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Quick Move Blog
Thursday, 22 December 2011
With so many economic factors combining to challenge the housing market, it is no wonder that we have experienced increasingly difficult market conditions throughout 2011. The level of home sales is currently running at half that recorded a few years ago before the onset of the banking crisis. Some industry experts are blaming the stricter mortgage criteria for these drastically reduced levels but the truth is that the troubles within the housing sector have not been caused by one factor alone; on the contrary, the housing market difficulties have been fuelled by a combination of obstacles ranging from a lack of buyer confidence, wary mortgage lenders and restricted lending to a supply-demand imbalance, unmanageable inflation and job uncertainty.
As we move towards 2012, improvement is not expected. The Council of Mortgage Lenders warns that the “mortgage drought” may become even worse and banks will find it harder to lend. Unfortunately, there aren’t any signs of economic recovery, or renewed stability within the job market. More properties are set to remain on the market extended lengths of time and asking prices are doomed to drop.
For certainty, a guaranteed cash sale and peace of mind, homeowners can call Quick Move Now which purchase property using their own cash funds, non-reliant on a mortgage or investors. The service Quick Move offer not only comes with no obligation and at no cost, it allows sellers to sidestep the hassle, worry and unpredictability of marketing for a buyer conventionally. Established in 1998 and having purchased in excess of 4,000 properties across the UK, Quick Move are able to provide the support needed by homeowners trying to sell and have developed a professional and efficient service many sellers have benefited from.
Despite the average property value falling throughout 2011, the number of property millionaires grew. This irregularity serves to widen the gap between the average homeowner and the very wealthy and means that the highest end of the market is booming while the rest struggles. 26,744 new British property millionaires were created in 2011; there is a great demand for top-end homes which has pushed up the average price up for equity-rich buyers. Currently, 253,118 British properties are valued over £1 million which equates to 1 in every 108 homes.
At present, the average home is valued at £221,128 which is 3% lower than in December 2010. In contrast, the average value of properties costing over £1 million is £1, 688,379 which is a rise of 2% since this time last year. A large proportion of the high value properties are in London, Surrey and counties in the South East. As a result of their financial positions, cash buyers or high-end purchasers are benefiting from low mortgage rates and strong demand from overseas buyers means boosted prices, especially in the Capital.
These statistics show just how differently the top of the market is performing compared to mainstream Britain. One area of the market flourishes while the other is struggling; inflation, interest rates, deposits, stagnant wages, redundancies, unemployment and limited mortgage finance are all contributing to the awkward market conditions for the average homeowner. With Britain’s wealthy stoking an already prospering market, the gap between them and the rest of Britain will widen and the market conditions for those with properties costing below £1 million could worsen. Even tougher conditions would wreak havoc in an already unstable, falling and slow market: there would be more properties on the market, less buyers available and asking prices would fall and fall.
Whichever rung of the property ladder you are on, whatever your situation and whatever your timescales, Quick Move Now is uniquely placed to provide a formal cash offer, guarantee the purchase and tailor our service to suit you. We cover solicitor’s costs and survey fees, estate agency fees will be avoided and there is no cost involved to obtain a no-obligation offer which means that you can take charge of the sale and avoid the difficult conditions on the market. We buy directly from the vendor, do not need a mortgage and do not rely on investor buyers, thus separating ourselves from the services provided by and problems associated with estate agents or other quick sale companies. For flexibility, reliability and an assured sale, contact Quick Move Now on 0800 068 3366.
Wednesday, 21 December 2011
Quick Move Now was approached last week by a gentleman who had been trying to sell his semi-detached house in Bedfordshire on the open market. After six months of marketing without any luck, he found a bungalow which he wished to purchase but was reliant on selling his current property first. Afraid of losing out on the bungalow and despondent at the lack of interest in his house, he took his estate agent’s advice and allowed them to conduct an open house.
The open house was scheduled for the second weekend of the following month. The gentleman was wary of the process but needed to secure a sale on the house so thought it was his only option. When speaking to us, he reported that he had felt uncomfortable with so many people entering his home and felt that there wasn’t any real control over what was going on. He found that most of the viewers were nosey neighbours who wanted a casual look at his home, fellow marketers trying to suss out the competition and time-wasting investors who had no intention of buying. Predictably, no offers were made and the inconvenience and worry had been for nothing.
Many people have shared similar open house experiences, declaring that they were pointless, awkward and, ultimately, unsuccessful. Some homeowners have even found that their open house was just an excuse for the estate agents to increase the number of people on their books and a chance for them to advertise themselves rather than the property. Furthermore, a study published on smartmoney.com reveals that the success rate for open houses is a mere 2%.
Our client need not have felt that an open house was his only option following ineffective marketing. Indeed, it wasn’t his only option, as he found when he contacted us for an offer. We completed on the purchase of his house today which meant that he secured his dream bungalow. The service Quick Move Now offer is second to none, leaving homeowners without a chain and in a strong position for their onward move, whatever it may be. Established in 1998 and specialists in home purchase, we buy every property using cash funds: mortgages are not required and investors are not relied on because we buy directly from the vendor. Avoiding the hassle and cost of marketing a property conventionally is easy as our offers are provided at no cost and with no obligation, timescales are set by the homeowner and Quick Move guarantee to buy.
Reports from the Council of Mortgage Lenders (CML) warn that higher unemployment in 2012 is likely to lead to a rise in house repossession. As unemployment levels grow and redundancy numbers increase, the housing market will suffer more and more. In an already unstable market, further problems within the economy would mean disaster for all homeowners, especially those trying to sell. The CML predicts that repossessions will total 45,000 next year compared to 37,000 this year. This prediction, coupled with the forecast that property sales in 2012 will be at their lowest since modern records began in 1978, spells further difficulty for the housing market which is likely to last well into the New Year. Higher levels of repossession will mean more properties on the market but lower levels of buyers so many people will find themselves unable to sell and move on.
If homeowners would like the assurance of a sale and the guarantee that they can avoid the cost, hassle and uncertainty associated with the often lengthy process of selling on the open market, Quick Move Now provides a free, no obligation service and can make a formal offer within 7 days. Whether you are facing repossession, struggling to sell due to the current lack of buyers or keen to avoid the difficulties involved in selling conventionally, Quick Move Now can help: we can complete on a sale using cash funds within 24 hours if necessary and tailor our service to suit the wishes of the seller. In order to discuss the benefits of the service in more detail and obtain an offer, Quick Move can be contacted on freephone 0800 068 3366.
Within the current market in particular, any problems experienced are exacerbated by the difficult predicament of first time buyers. Many property journalists and industry experts believe that the only chance the housing market overall has of recovery is if first time buyers can manage to get a rung on the ladder: unfortunately, this chance is slim. There are currently around 200,000 first time buyers in the UK a year compared to approximately 500,000 before 2008. Not only are there less first time buyers, the average age of first time buyers is creeping up and stands at 33 years of age at present.
Rightmove has even gone so far as to suggest that those stepping onto the property ladder will be “endangered species” in 2012. For those aged below 30, just 22% of first time buyers entered the housing market under their own financial steam. The percentage is around 8% for those aged under 25. The table below (care of http://www.bbc.co.uk/news/business-16183341) shows the change in levels of unassisted first time buyers over the last 6 years.
| Unassisted first-time buyers |
| Region | 2005 | 2011 |
| Source: CML | | |
| North | 73% | 39% |
| Yorkshire and Humberside | 71% | 39% |
| North West | 71% | 41% |
| East Anglia | 66% | 33% |
| East Midlands | 71% | 38% |
| West Midlands | 69% | 36% |
| South West | 66% | 30% |
| South East | 67% | 32% |
| Greater London | 68% | 29% |
| Scotland | 69% | 33% |
| Wales | 72% | 38% |
| Northern Ireland | 68% | 44% |
| UK | 69% | 35% |
First time buyers face many obstacles when trying to purchase a property including raising a deposit, stagnating wages, high levels of redundancy and unemployment, high interest rates, disproportionate inflation and limited mortgage lending. If the number of first time buyers able to proceed with purchases continues to decrease, the market will become weaker and weaker: the buyer-seller imbalance will become steeper and less homeowners will be able to make the onward move they aspire to.
In a housing market characterised by anxiety and unsteadiness, homeowners can explore the service of Quick Move Now who eliminate the stress and hassle of waiting on the market for a buyer. As well as covering vendor’s legal fees and survey costs, we use cash funds to buy and do not need to obtain a mortgage. As a result, we can buy property efficiently, offering the certainty which the market cannot. An offer from Quick Move Now is free and comes with no obligation, which means that homeowners gain the control over their future which is unavailable on the open market and can make the fresh start they desire for the New Year.
Monday, 19 December 2011
The FSA has proposed new affordability rules to stop irresponsible lending. The proposals will tighten up lender credit checks on mortgage applications, effectively signalling an end to 'self-cert' mortgages, where people were able to get mortgages with few checks on their actual income levels or ability to repay their mortgage.
Interest-only mortgages will still be offered but only if there is a 'credible' plan to repay the loan, with applicants no longer able to assume rising house prices will repay the mortgage balance.
Previous predictions for a flat housing and mortgage market in 2012 now look optimistic; the likelihood is that lending will slide and the housing market will suffer another dip. Worryingly, the rate at which banks lend to each other – LIBOR – is creeping upwards towards 1.05%: banks will look to pass these costs on to consumers and, thus, mortgage rates will rise and loan-to-value lending will fall. Come the New Year, banks will find it difficult to increase their loan books.
Unfortunately, in a concerning cycle, instability breeds a lack of confidence and a lack of confidence means a weaker market. If the struggle to obtain mortgage lending continues and worsens as experts predict, we will see a floundering housing market moving through 2012. House price reductions will persist, people will spend longer waiting on the market and potential buyers will be wary of committing to a purchase. With investors dominating the mortgage market and rents increasing, many people will be priced out of both sectors of the housing market.
Amidst the gloomy predictions for next year, Quick Move Now are in the unique position of being able to offer a guaranteed sale. In order to avoid the uncertainties and instabilities of the current market, homeowners can explore Quick Move’s service confident in the knowledge that we use cash funds to buy, do not charge fees or oblige you to accept an offer and can complete when you need us to. There is nothing to lose in requesting an offer and everything to gain from accepting one. For a secure, guaranteed and hassle-free sale, contact Quick Move Now for more information on freephone 0800 068 3366.
Thursday, 15 December 2011
Mortgages are secured loans that use your home as collateral; inability to repay the loan will certainly lead to the repossession of your house. You have to shop around and take out a home mortgage loan so that you don’t settle with a loan that is beyond your affordability. Defaulting on loans not only has the risk of making the homeowner lose his homeownership rights but he also trashes his credit score in the long run. If you want to avoid taking out a mortgage refinance loan in the near future, you have to educate yourself on the types of mortgage loans that are available in the market. Check some out.
Fixed rate mortgage loans - The most common mortgage loan type is the fixed rate mortgage loan. As the name suggests, the interest rate on this loan will be fixed throughout the repayment term of the loan and therefore the monthly payments will also be fixed till you repay the loan and own your house. This is ideal for all those who are not good at managing their personal finances as you can stay sure about the exact amount to keep aside for your monthly mortgage installment.
Tracker mortgage - Tracker mortgages track the Bank Of England base rate, usually at a few percentage point above it. Could be considered a questionable option for mortgages at the moment, due to the fact that interest rates are very low (0.5%), and can only go up. Another potential downside of a tracker mortgage is the uncertainty of the changing rate, meaning that the monthly repayment amount can vary with interest rates. This means tracker mortgages offer less stability as fixed rate mortgages.
Variable rate loan - This mortgage is also based on tracking the base rate, as it is a rate that can vary during the mortgage term.
Interest-only mortgage - When you take out the interest-only loan in the UK, you only pay back the interest rate and not the principal amount. However, at the end of the term you’re supposed to repay the outstanding balance. How you’ll manage the payments depends on you. However, when you take out such a loan you should always consider whether you’ll be able to repay the entire balance at the end and if this will hurt your finances at the end.
Capped rate mortgage - With such mortgage loans, the rates are fixed but if the rates suddenly fall, you have to pay the lower rate and this kind of loan is good for those who follow a strict budget throughout the month.
You must be aware of the fact that getting a mortgage loan is the biggest responsibility on your shoulders and until you repay the entire amount that you’ve borrowed on your mortgage loan, you must keep on managing your finances in the most effective manner. If you think you may default on the payments, you can opt for a mortgage refinance only after considering the pros and cons.
Thursday, 8 December 2011
Amidst economic disorder and uncertainty, many people have been shocked that asking prices have registered such a slow decline. Research conducted by Rightmove goes some way to explaining why: despite troubles within the economy, asking prices are actually up by 1.2% on last year and are around £70,000 ahead of ‘actual’ prices reported by the Land Registry. It would be tough enough to sell a property if priced accurately on the market, let alone if priced too high.
Rightmove director Miles Shipside attributes the unrealistic asking prices and lack of necessary reductions to “the public’s belief [that] the value of bricks and mortar… def[ies] the deteriorating economic situation.” Indeed, Rightmove’s survey shows that more than one in five homeowners confidently expects prices to rise. Of the 26,300 consumers surveyed, 63% do not believe that house prices will be lower in a year’s time than they are now. 22% even believe that prices will be higher!
Miles Shipside added: “It should be remembered that in spite of the overall confidence expressed in this survey for property prices, transactions volumes are still well down on historic norms. Economic stability in the UK and Eurozone will be needed before many are willing or able to re-engage with the property market.” Unrealistic asking prices will create even more delays and instability within the already turbulent housing market. Finding a buyer is proving to be increasingly more difficult so inaccurate pricing can only lead to extended periods of time trying to sell and, ultimately, disappointment.
In order to avoid the confusion of the open market, homeowners can explore the efficient, hassle-free service of Quick Move Now at no charge and with no obligation. Control over timescales is given back to the homeowner as Quick Move purchases using their own cash funds and work with a dedicated legal team who ensure that completion dates are met. There is nothing to lose in obtaining an offer; a guaranteed sale will put you in a unique, strong position within a weak and falling market.
Tuesday, 6 December 2011
The Halifax today reported a fall in average house prices in November, by 0.9%.
The average house price is now £161,731, marginally lower than at the end of 2010.
Martin Ellis of the Halifax commented: "House prices have remained remarkably stable in 2011 despite the difficult economic climate and pressure on household finances."
He went on to say that he expects prices, and the number of sales, to remain broadly unchanged over the coming few months as demand and supply change little.
Quick Move FTI at 26.8% for November.
Unusually, especially for the time of year, Quick Move’s fall through rates for November were slightly lower than for the previous month; we are wary of this improvement, however slight, and are endeavouring not to be fooled into a false sense of security. The lower fall through rate masks the true story and gives false hope: it has been increasingly more difficult to secure sales as buyers able to proceed are rare. Overall, properties have been on the market longer and asking prices have had to be reduced numerous times in order to affect a sale. Many viewers are stuck in chains with properties to sell, struggling to obtain mortgage funding or raise a deposit or have lost confidence in the housing market and economy. As a result, finding a buyer is very difficult and, even when a buyer has been secured, 26.8% still signifies a high chance of fall through.
Within the company, we have an individual department responsible for managing the sale progression of our properties yet we still cannot rule out fall throughs. Although our fall through rates for November decreased slightly, the improvement is misleading and the rate would be higher and more difficult to manage for independent home sellers, especially in a falling market with a high level of asking price reductions and prolonged periods spent trying to sell. The housing market continues to be unpredictable and unstable.
Unfortunately, sales abortions are unavoidable. There are number of factors which can cause a sale abortion which include problems within the economy such as job uncertainty, redundancies, interest rates and inflation, the difficulty of obtaining mortgage lending and raising a deposit, other buyers within the chain pulling out, problems at survey and uncertainty within the market in general. As a result of the current economic problems, people are often reticent and are pulling out of sales at different stages of the process because they are afraid of committing.
Many homeowners are desperate for a change of fortune in 2012 and are reliant on the economic situation improving in order to sell their properties. An imminent revival within the economy is highly unlikely and predictions suggest that we could be waiting until the end of next year before we see signs of recovery. Without recovery within the economy, the housing market cannot be expected to pick up. If predictions are correct, 2012 is set to be as difficult and concerning as 2011: only time will tell.
*This figure is based on house sales that are professionally qualified and managed and the true rate of fall through for normal house buyers and sellers is likely to be much higher.
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