First-Time Buyers Offered More Choice Of 90% Mortgages

First-time buyers have more choice of mortgage deals after several banks and building societies this week launched 90% home loans. During much of last year, 90% loan-to-value (LTV) deals requiring a 10% deposit were thin on the ground, but in recent weeks more lenders have stepped back into this market. A three-year fixed-rate 90% deal priced at 3.4% and with a £199 upfront fee has been launched by Nottingham building society. It also rolled out a two-year fix at 85% LTV with a rate of 2.6% that has no fees. Read more on the Guardian website.

https://www.theguardian.com/money/2021/feb/20/uk-first-time-buyers-offered-more-choice-of-90-per-cent-mortgages

Lack Of Suitable Housing Blocks Homeowners From Moving

A lack of suitable housing to buy is the biggest hurdle for people looking to sell-up and move home, following by stamp duty and mortgage costs.  According to the Nottingham Building Society (NBS), 11% of mortgage customers – equivalent to around 1.2 million homeowners – have given up plans to move house in the past three years due to financial issues including mortgages. The cost of stamp duty stopped around one in 12 homeowners (8%) while 3% of owners – around 327,000 people – were turned down for mortgages. Younger home movers – those aged between 18 and 44 – were most likely to be put off by the cost of stamp duty – around 14% who had given up buying blamed stamp duty. Read more on Housing Excellence.

Buy-To-Let Landlords’ Voids Experience

More than a fifth of buy-to-let landlords have to wait longer than four months before signing up their first tenants, suggests research for the Nottingham Building Society (NBS). Its study among landlords across the country shows 21% said they had to wait four months or more after completing their buy-to-let mortgage before they had their first paying tenants. The research found 53% of landlords have paying tenants within a couple of months of buying their first buy-to-let through lenders across the UK but substantial numbers are facing delays which pile the pressure on their finances. Costs involved in setting up as a landlord are not trivial – the average landlord has to pay out £2,000 on their first property before they find tenants although one in three (35%) manage to spend less than £1,000. Read more on the Housing Excellence website.

Under-35s Put Saving For A Home Ahead Of Saving For Retirement

Almost a quarter of under-35s are more concerned with putting money aside for a deposit to buy a home rather than pay it into a pension pot. Nottingham Building Society (NBS) said that 24% of this age group was more focused on saving for a home than saving for retirement, with only 8% targeting pensions. Research shows that 34% of under-35s are either saving for the first home or to move home, compared with 18% of the population as a whole. Retirement saving is the main saving and investing priority for the population as a whole with 24% selecting it ahead of 23% who say having cash for unexpected bills is their main priority. But it only becomes the major priority when people reach the age of 45. Read more on the Housing Excellence website.