Nationwide BS House Prices Index Quarter 1 2011

Some interesting figures published this morning:

Nationally, house prices increased by 0.5% in March
On the three month on three month measure, prices rose by 0.6%
Prices 0.1% higher than one year ago

These are national averages and will vary vastly from region to region.

To illustrate this as regards average prices for Greater London:

House prices increased by 1.31% over the last 3 months.
House prices increased by 2.09% over the last 12 months.
and are 2.02% higher than in the first quarter of 2007.

Changes affecting interest only mortgage applications

Lloyds Banking Group has just made the following announcement:

"Further to the Group's strategic review of interest only lending, we would like to update you on a change affecting Halifax mortgage business.

With effect from Wednesday 6th April, the maximum loan to value for all new mortgages where all or some of the lending is on an interest only basis will be 75%. This will also be applicable to any existing customers that wish to port their mortgage.

This change will ensure that the interest only lending policy is aligned across all mortgage brands within Lloyds Banking Group"

This follows on from a policy change in October 2010 whereby only the following are acceptable sources of repayment and lists what documentation is required:

Endowments 

Copy of the latest projection statement dated within the last 12 months 

Stocks & Shares ISA

Copy of the latest investment statement dated within the last 12 months  

                                   

Unit Trusts/Open Ended Investment Companies (OEICs)

Copy of the latest investment statement dated within the last 12 months

Pensions

Copy of the latest projection statement dated within the last 12 months        

                                             

Investment Bonds                                     
Copy of the latest investment statement dated in the last 12 months

UK Stocks & Shares 

Copy of the share valuation on date of assessment        

                               

Savings (UK Sterling)

Copy of passbook/statement of balance
within the last 12 months                                                      

Sale of Second Home (UK)  
Property details, amount of any mortgage debt and mortgage provider. (Property valuation and land registry search carried out by us if needed e.g. if the property is unencumbered).

Halifax is alone at the moment in having different interest rates for interest only mortgages.

Remortgaging on the increase due to worries about rate rises

The number of people remortgaging rose to a 26-month high during February as homeowners braced themselves for higher interest rates, figures revealed today.

Around 35,725 loans were approved for people switching to a new deal during the month, the highest level since December 2008, according to the Bank of England.

The increase is likely to have been driven by expectations that the Bank of England will increase the base rate from its current record low of 0.5% sooner than previously thought due to high inflation. The speculation has prompted people who had been sitting on their lenders' standard variable rate to remortgage before rates start to rise.

Our computer programs allow us to quickly assess the costs of remortgaging when compared to your existing lender's standard variable rate or whatever deal they may be offering you.

It is still true to say that sometimes the best deals are "for new customers only", so give us a call and we'll help you make the right choice for you and not the bank!