Garden as a way of expressing yourself

These days after chasing for fame (or infame in some cases), money and luxury, we have recently reached the stage where we need some comfort and peace of mind too. Here is where our creativity is starting to mess around. Your home is your keep, so radical disturbances are rather scarce and can lead to your loved ones becoming very frustrated. But what if you had a garden? A few square meters of green pitch that you could use, adapt and transform to your requirements? That would be really helpful!

Today you can be almost 100 per cent sure that your house will come with a back-garden. Even some apartments have a separate patches of green for their owners, so try and look for one, cause there is nothing better than an afternoon spend in your comfy chair with your favorite book, having a nice breeze on your face and your kids playing around in a pond. Just watch for the pond pumps and make sure you have a filtering system in place, so the water will be clear and nicely looking.

Garden equipment is something very vital to your leisure, so choose carefully. You can buy some cheap furnishings for less than a £100, including your barbecue grill, but to be honest they are not worth your time and money. It’s better to put some more cash upfront and enjoy a peace of mind with your family.

Spruce Up Your Home

If you are thinking of letting a property and planning on filling it with designer items and furniture, then now is the best time to buy. Due to the current recession, shops are putting on sales and offering items at bargain prices, just to make a sale and a little bit of money. A number of high street stores are offering items of furniture at almost half the original price.

A friend of mine bought a number of designer radiators the other week and managed to get them at a discounted price due to the store having a closing down sale. They look great and were a complete bargain!

Make sure that before you go shopping you take a look around the house to see what items you could do with being replaced. It may be useful to make a little list so you don’t forget. You may realise that the office chairs you have been using could really do with being thrown in the skip or the headboard on your bed needs updating. Now is the best time to take a trip to the shops to bag a bargain.

If you are planning on letting for the first time, then now is the time to invest in time such as washing machines and sofas for the future.

Housing slump likely to be over in 2009, says LSR

A forecast by the Lombard Street Research (LSR) says that the UK housing slump may be over by end of 2009.

LSR, regarded as one of the most reputed economic consultancies of London, claimed that home prices have now come to “affordable” levels.

LSR worked out an affordability index in co-ordination with The Daily Telegraph, which revealed that house prices throughout the UK are far better than their long-term average, for the first time in 5 years.

According to LSR’s senior economist, Jamie Dannhauser, house prices levels will bottom out at the end of 2009, and the recovery will be little extra than the bounce from bottom.

Dannhauser believes that current average prices are quite affordable for those with hefty deposits and good credit rating.

Property prices have gone down by around 20% since onset of credit crunch in last 18 months. There are many industry watchers who are forecasting further decline of 15% on account of rising unemployment.

But LSR believes that combination of low interest rates and falling prices means prevailing prices are good value for those having capacity to pay big deposit.

Earlier in April, Halifax reported 1.9% fall in the UK house prices in March, as compared to February. But just a day later Nationwide’s house price index showed 0.9% increase in March.

The Centre for Economics and Business Research (CERB) also hinted that housing market recovery may be around the corner.

Stewart Milne Homes’s sales showing positive increase

Good days seem to be here for the housebuilder Stewart Milne Homes. Renewed optimism seen in the Scottish housing market has helped the housebuilder in registering increase in sales on its quality homes, since beginning of 2009.

From January onwards, the premium housebuilder’s sales in Scottish portfolio have risen every month with increase of over 100% during February and March 2009.

The Stewart Mine Homes group offers different incentives to buyers in the form of tailor-made purchase plans which can help individuals with mortgages.

According to Group Managing Director – Homes, John Slater, increase in number of visitors and enquiry levels is indicator of renewed optimism. He claims that the group tailors purchase plans by working closely with customers which makes buying a Stewart Milne home an affordable proposition. He supports this claim by giving example of ABeleven development in Aberdeen where growth in sales has been double every month since beginning of 2009. He asserts that given the right homes and right location, consumers are ready to buy again.

Recent UK house price data indicates that Scotland is the only area which witnessed price rise during last one year.

However, more than 50% of aspiring home buyers believe that house prices will remain static or increase marginally, while 66% consider that now is the right time to purchase a home.

Government launches Homeowners’ Mortgage Support Scheme

The Homeowners’ Mortgage Support Scheme (HMSS) by the Government has been launched on 21 April. Details of scheme were announced last year.

It is aimed at helping homeowners who are losing part of their income and will allow postponement of up to 70% mortgage interest payments.

Housing Minister Margaret Beckett claimed that the Government is aiming to help people who are unable to pay their mortgages because of economic downturn and are ineligible for re-housing.
Applicants will have to have sufficient income to pay at least 30% of their interest.
Those with mortgage debt lower than £400,000 and savings of less than £16,000 will also qualify for the HMSS.

Lenders who have agreed to participate in the scheme include Bradford & Bingley, Lloyds Banking Group, Clydesdale, Yorkshire Banks, RBS, Northern Bank and Cumberland Building Society.
The Post Office, Bank of Ireland and Standard Life Bank are also expected to sign up, as are sub-prime lenders GE Money, GMAC and Kensington.

However response from Council of Mortgage Lenders (CML) to the scheme backed by the Government’s guarantee seems to be gloomy. According to Michael Coogan, director general CML, the HMSS is an additional helpful tool but CML is not sure that guarantee will be triggered in most of the cases.

Borrowers in negative equity being offered 120% mortgages

Halifax, one of the biggest mortgage lenders in the UK has come to the rescue of existing customers with offer of 120% loans at the end of their current deal.

HBOS, member of the Lloyds Banking Group is planning to offer new loans to customers who are in negative equity and whose current deals such as fixed rate are about to expire.

Normally in case of borrowers in negative equity, rates are reverted to standard variable rate (SVR) and it becomes difficult for them to re-mortgage if the amount of new loan exceeds property’s current value on account of house price decline.

Lenders are approving loans up to 95% of property value, but the customers bargaining for most competitive deals have to borrow not more than 60 to 75%.

However Halifax and bank of Scotland are offering same rates of 95% loans to re-mortgage customers who require 120% of the property value.

HBOS are extending negative equity loans this month up to 120% LTV, but will not be publicizing this anywhere. Brokers believe HBOS is possibly the only major lender helping the customers in negative equity.

Melanie Bien of Savills Private Finance remarked that HBOS was doing decent thing by providing loans at fixed rate to those in negative equity, which is normally given only to customers borrowing at 95% LTV. She urged other lenders to follow HBOS’s good example.

900,000 borrowers enter into negative equity, reports CML

Data released by the Council of Mortgage Lenders (CML) reveals that nearly 900,000 borrowers are in negative equity due to continuing fall in house prices.

After reaching a high in summer 2007, house prices in the market have plunged by 20%, leaving those with mortgages more than property value, with too little equity.

Negative equity poses a problem only when people are compelled to move. Those who can continue to stay in their homes will gain in future as the market starts stabilising.

CML figures indicate that borrowers from North are the worst affected, with 9.2% (over 70,000) of homes occupied by owners in the region falling in negative equity.

The number of those in negative equity in the South East is 150,000, equating to 5.7% of homes in that region. However, situation in Scotland is not that bad with only 1% of owners in negative equity.
CML recalls that 1.5 million borrowers had gone in negative equity during early 1990s housing slump, but recovered later. CML is expecting similar outcome for the present borrowers particularly in the backdrop of easing of situation due to lower interest rates.

Survey by the research group GfK NOP, conducted in February, had forecast negative equity for 5 million homeowners by the end of 2009, if down trend in house prices continues.

But these figures are termed as “a little extreme” by the Royal Institution of Chartered Surveyors. CML also called these estimates as alarming and implausible.

25% of homes still not having buyers after six months

According to a recent research, nearly 25% of houses and 30% of flats up for sale are still on the market, not finding any buyers for more than six months. While 7% of houses and 10% of flats, are unsold for more than a year.

The research reveals that despite increasing interest being shown by the potential buyers in last few weeks, shortage of mortgages and decline in house prices kept sales static.

According to reports one-bedroom flats, normally popular with first-time buyers are hardest to sell, while three-bedroom homes are in more demand.

The market has become most stagnant in Aberystwyth in Wales, where 23% of flats and 26% of house are still unsold for last 12 months. Homes in Rochdale are also not finding buyers even after a year. Shrewsbury, Newport, Hartlepool, Torquay and Oldham are having 15 to 20% of homes waiting for sale for over a year.

According to Globrix chief executive, Daniel Lee, on the face of it figures of unsold homes paint pretty grim picture and provide no positive sign that market will recover soon. But in reality there is more optimism in the market. Estate agents are claiming that buyer interest is on the rise over last 2 months.

Lee adds that increased activity has not yet converted into tangible sales or reached the levels to clear market gridlock. He feels next couple of months will indicate the state of property market since early spring is traditionally very favourable period for property sales.

Inquiries from middle-class homeowners for help surge 220%

Latest report by a company, which buys properties from cash-strapped sellers, the middle-class homeowner is the biggest sufferer of the economic slowdown and collapse of the housing market.

The property recovery specialist firm, the Property Portfolio Rescue (PPR), informs that 3,000 homeowners have sought its help in last 3 months while inquiries from middle-class homeowners soared by 220% since last year.

PPR states that large number of buy-to-let landlords are being forced to sell their holdings as they are unable to refinance mortgage deals. However most of them are seeking company’s help to avoid repossession of properties.

The firm is apprehending repossession of 70,000 homes, amounting to 60% increase over last year. According to company director, Nick Hopkinson, this surge is an indication that recession is biting the whole UK economy. He feels that more small buy-to-let landlords would face financial difficulties since lower mortgage costs will not be available for longer period.

Hopkinson says that landlords will face mortgage cost time bomb when inflation pushes up interest rates again. He suggests them to save against this eventuality or reduce debt liability.

Last week, first time since last 5 months of continuous rate cuts, the Bank of England stopped further cuts and retained base rate at 0.5%.

HSBC offering competitive deals to first time buyers

Those who were struggling so far to get onto property ladder due to demand of hefty deposits by lenders have got a boost with an attractive offer from HSBC of a competitive deal that requires a deposit of only 10%.

A 2-year fixed-rate of 4.99% is being offered with maximum 90% loan-to-value at a nominal fee of £199.

Apart form this; a lifetime tracker mortgage is also being floated at 4.09% above current base rate of 4.59% and fees of £999. Borrowers will be allowed to switch to another deal in case interest rates go up, since HSBC will not be charging exit fee.

However, only those holding a HSBC Plus or Premier current account will be eligible to apply.

According to General Manager, Joe Garner, of HSBC’s personal financial services, although house prices will continue to fall, it will not be so forever. He claimed that HSBC had been standing by its customers through thick and thin and the changes in offer represent HSBC’s resolve to provide best possible deals to customers on their mortgage.

Ray Boulger of mortgage broker John Charcol, welcomed new deals and urged the Government to compel three lenders, Northern Rock, RBS and Lloyds Banking Group to follow suit.