The Telegraph is reporting that the big property developers are keeping busy. Whilst not exactly boom time again it seems that things are at least stabilising, and not getting any worse.

http://www.telegraph.co.uk/finance/newsbysector/constructionandproperty/9001042/Housebuilders-to-report-resilient-property-market.html

Meanwhile a survey by the Halifax of local authority areas shows that if you’re living in the right part of the UK and have a sizeable deposit first time buyers can afford to get on the property ladder. Whether or not they could afford to by a new-build home remains to be seen.

And in a separate Halifax survey it is reported that the total number of empty homes in England increased by 1.8% in 2011.

The number, which includes all private and public empty homes, including those vacant for less than six months, jumped from 650,127 in April 2010 to 662,105 at the same period this year.

While the total number of empty homes is on the rise, the number of long-term empty private homes in England has fallen to its lowest level since 2008. Private long-term empty homes account for 44% of all empty housing, with the rest taken up by short-term empty private homes and all empty public homes, including council and social housing.

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Read more about this subject here: Building homes, buying homes and empty homes

Whether for personal or business reasons there are many people that are needing to improve their credit rating. Whether your score only needs a small boost or a complete overhaul, these tips can help you get your credit score where you want it to be.

Remember that business creditors also report the conduct of your account to the credit reference agencies, so if your agreement says 30 days you may find that anything beyond that is reported as a late payment.

Start by getting a copy of your credit report. There are many agencies where you can get this information.  Look out for the “monitoring” products.  All you need is your statutory report which costs £2.  You can now get the report by post or email.  The only way that you can fix any credit report issues is to get the report, and work out each item.

If you are the director of a limited company, or a sole trader you will need a business credit report too.  It is vital to understand that if you are trying to raise commercial finance you will still be checked as an individual.  Forget trying to hide behind a limited company name.

If you are having difficulty be sure to get in touch with your creditors to determine which bills you can postpone and which you can pay a little at a time. You can save yourself a lot of money if you learn what you need to do to avoid paying interest penalties. As you learn what leeway certain creditors will give you, then you will be able to focus the bills that need taking care of immediately.

Be sure to study your credit report carefully, as it could contain mistakes. Read through every mark against your credit score, and insure each is accurate. In the event that you do discover something suspect, immediately bring it into question with whomever reported it. When you do this, you may be able to have fraudulent or incorrect items removed. That will give you a better credit rating.

Be aware that you have rights when communicating with collection agencies. For example, you will not be imprisoned because of an inability to pay a debt, and a collection agency cannot legally make threats toward you.  The more you know about your rights, the more you’ll be able to stand up for yourself.

You should never use more than one third of your credit limit on any card. Keeping your balance in this range also keeps your payments reasonable. Anything over this is not good for your personal financial situation.

You can try to see if you can set up a payment plan for the bills that are already in collections.  Not taking the call of a debt collector can exacerbate the problem. Often, collection agencies will actually work with you to come up with a payment plan that is realistic.

If you are behind with your bills try to be more honest you are about your situation.  Don’t start applying for loans before you have set up payment plans, you will just be wasting your time and damaging your credit report.

These techniques can help you get back on the road to good credit. If you start today, you will be well on the way to getting your credit back in good shape.  It is possible to bet bad credit commercial mortgages, but you need to be ready to answer all the difficult questions!

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Read more about this subject here: Credit Repair and Credit Raitings

According to Zoopla buying property is now cheaper than renting in 47 of the 50 largest towns and cities across the country.

However Zoopla have been a little bit loose with their maths to arrive at that conclusion.

They have taken a 100% Loan-to-value mortgage product (which probably does not exist) and compared the monthly costs with renting.

The website “letting agent today” goes on to explain that to compare the cost of buying versus renting, Zoopla analysed the current asking prices and rents of over 78,000 two-bedroom flats currently on the market, comparing the rental cost to the cost of ownership based on servicing an interest-only mortgage at 5% pa.

If you want to move, do some research on the internet about different communities and neighborhoods. Using the web, you can nearly become an expert on the area without even leaving your home. Consider the salary margins, population and unemployment rate of your desired location before purchasing a house there so you ensure that you will love where you live.

Swansea, Plymouth and Bournemouth are the only three locations on the list of 50 towns where it remains cheaper to rent than buy today.

In contrast, Milton Keynes comes top of the list of locations where buying beats renting and where renting is 36% more expensive than owning, leaving renters £2,436 per year worse off on average.

Get a warranty for the house. When you are buying a new home from the person who built it, or from an owner, get a warranty. Builders should be willing to warranty their home products for a certain time period. Previous owners should be willing to purchase a home warranty for at least a year to help you offset any impending repairs.

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Read more about this subject here: Is renting really more expensive than buying property?

Companies will no longer be able to offer customers mortgage suggestions about a non-advised basis under proposals in the Mortgage Market Review. And whilst the activities of commercial mortgage brokers are not currently regulated it could have a knock on effect.

The FSA says it felt borrowers could not make the main difference between what was advised and non-advised and therefore proposes to get rid of the non-advised sales process and instead require that mortgages are sold either on an advised basis or, in the limited circumstances on an execution-only basis.

The FSA proposes however to permit high net worth people and mortgage professionals to opt-out of receiving advice and to be able to buy a product on an execution-only basis, irrespective of whether the sale involves some form of interactive discussion with an intermediary.

Consumers can also ask for execution-only, however they must know precisely what they want to buy. With regards to a home loan, the FSA expect the consumer to know, and to be able to supply the intermediary with information about the product they want, including:

• The Lender’s name
• The rate and type of interest product, including length of term.
• The price or value of the property
• Whether they want an interest-only or a repayment mortgage

Customers who the FSA class as vulnerable, such as people looking for right to buy, equity release, sale and rent back, and those consolidating debt will not be able to opt out of advice. The only exception being sale and rent back customers who can reject the advice being offered.

The FSA’s consultation is open until March 2012 with the final rules expected to be in place in the summer of 2012. Brokers who are not currently qualified would have until 2013 to implement the rules. However the timescale could be moved depending on the state of the UK and Eurozone economies.

All of the above are contained in the FSA’s Mortgage Market Review which is a long awaited shake up of how mortgage lenders interact with their existing and potential customers. There is a potential negative impact for property developers and commercial customers as although these products specifically will not be regulated it is hard to see how many commercial mortgage brokers will remain in business.

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This is an introduction to commercial mortgages to help you understand what you need to do to successfully get a commercial mortgage for your business.

The principles are the same whether you are a sole trader or limited company.  However it is worth bearing in mind that most limited companies have multiple directors, so as you will see, this can make a difference to the banks.

The present economic uncertainties combined with restricted availability of capital for commercial mortgages means that it is likely that potential borrowers will have to carry out quite a lot of research in to business financing.

Commercial mortgages can be used to buy new business premises or to buy an existing business in its entirety. Lenders generally require a deposit of around 25%-40% of the total value. Mortgage terms can run from 1 year, up to around 30 years.

Despite the UK government’s u-turn on residential buy to let properties being held in SIPPs some people are optimistic that the market will grow further as commercial mortgages become more mainstream.  Any improvement to the wider economy will greatly help investors looking to expand their portfolio into the commercial property sector.

Using A Commercial Mortgage Broker

Using a mortgage broker who is expert in arranging commercial mortgages can make a significant difference.  In addition to commercial mortgages most commercial finance brokers will deal in bridging loans, development finance and secured loans.

You can use a commercial mortgage broker at the same time as approaching your bank directly, but watch out for how many credit checks are being carried out.  Commercial mortgages and the activities of brokers are almost completely unregulated so looking out for membership of a trade association is a good precaution.  The National Association of Commercial Finance Brokers attempts to regulate the activities of its members, so is a good place to start.

Frequently, the mortgage is supplemented by a personal guarantee from the owner(s), which makes the debt payable in full even if the business folds or the property is repossessed.  The lender can also call on the collateral if they think the security will not satisfy the outstanding balance.  A limited company with 3 or 4 directors all providing guarantees is going to be a much more attractive proposition to a lender than a one-man-band.

Rates and Loan-to-Values for Commercial Mortgages

The exact loan-to-value you receive for your commercial loan will depend on the lender and the strength of your proposition. Many commercial lenders consider the type of business they are providing the loan for as well as the condition of the property.  The rates charged by different lenders can vary tremendously.

A good solid business with a proven track record, buying a property in good condition should be able to negotiate very favorable terms from a choice of lenders.  However, if any of these factors are lacking then the rates can start climbing steeply.  Another good reason why using a commercial mortgage broker is a good idea.

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Read more about this subject here: Introduction to Commercial Mortgages

Some recent statistics show that the lending situation is starting to recover.  The Council of Mortgage Lenders has released figures that show a 20% increase in lending from February to March, and although the lending figures are down from a year previously.

Throughout the recession house prices and mortgage lending dropped consistently over a number of months, and consequently the market place becoming stagnant.  So if these figures show that things are starting to recover it has to be good news, not only for the residential market but also for commercial and buy-to-let borrowers.

A spokesman from the Council of Mortgage Lenders confirmed that it would appear that the mortgage market is moving again, with more people finding that they can now obtain the financing that they require in order to help pull themselves out of their own financial crises.

Mortgage Application Fees Going Up.

In a separate report it has been revealed that the application fees associated with mortgage and remortgage lending have increased considerably over the last 18 months.  If you are considering a remortgage, it is essential that you fully research the total cost implications of switching lender – not just the headline rate.

Between September 2009 and March 2011 the average application fee charged on mortgage and remortgage products in the UK increased by just under £100. That’s the findings of recent research from a leading price comparison website and featured in the specialist finance publication Mortgage Strategy.

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Some Confusion over the state of the housing market in England.

This is not really news, after all anyone actually involved in either buying or refinancing property recently will instinctively know that the situation has not improved (or got worse) in the last few months.

It’s to early to say whether the governments latest attempts to kick start the property market is going to have an effect.  One can only hope!

Under a headline that “UK house prices surprisingly resilient” the BBC are reporting that..

UK house prices have remained “surprisingly resilient” in recent months, with values rising again in November, the Nationwide has said.

It said the average home rose in value by 0.4% in November to £165,798.

This was a 1.6% year-on-year increase, according to the figures based on Nationwide’s own mortgage data.

The full story is here and it goes on to explain that mortgage approvals are also on the up.

However, the land registry figures are telling a different story:

• They show that the average price of a home in England is £159,999
• This is a monthly change downwards -0.9%
• Annual equivalent  -3.2%

You can read the full land registry report here, but the overall message appears to be that whether house prices are going up or down the change is not really significant enough to be overly concerned.

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According to the latest Rightmove House Price Index for May 2011, the UK property Market is remaining in a state of limbo. A lack of proceedable buyers is not helping, and a it would appear that most new sellers are marketing under forced sale conditions, sometimes holding out for unrealistic asking prices. Although there is also conflicting data from other sources.

London property prices buck the trend.

Some London based agents are reporting that the average price of a house in North London is now £367,594 – around 1.2% higher compared to last year. The average price of a house in South London is £305,249, which is an annual increase of only 0.2%.

According to the latest Chesterton Humberts/cebr APRIL 2011 House Price Poll of Polls, this makes North London house prices £62,345 more expensive on average compared to South London. The gulf between the two areas has continued to widen, from last years’ gap of £58,595.

Whereas the latest data from the Communities and Local Government department show UK house prices fell slightly in the first three months of the year.

Apparently From January through to the end of March this year house prices were 0.5% lower than for the previous three months.

Gross mortgage lending tumbled by 14% in April to an estimated £9.8 billion, according to the Council of Mortgage Lenders.

Interest Rates are not the only factor

According to research by the Halifax many homeowners may have benefitted from low interest rates, but they are currently facing their highest household costs for three years.

They say that Over the past year, the average annual cost associated with owning and running a home rose by 1.4% (£127) from £8956 in March 2010 to £9083 in March 2011.

So once again there are conflicting news items about property prices, and it’s not all bad news all of the time. This has to be good news for property developers.

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According to the latest Rightmove House Price Index for May 2011, the UK property Market is remaining in a state of limbo. A lack of proceedable buyers is not helping, and a it would appear that most new sellers are marketing under forced sale conditions, sometimes holding out for unrealistic asking prices. Although there is also conflicting data from other sources.

London property prices buck the trend.

Some London based agents are reporting that the average price of a house in North London is now £367,594 – around 1.2% higher compared to last year. The average price of a house in South London is £305,249, which is an annual increase of only 0.2%.

According to the latest Chesterton Humberts/cebr APRIL 2011 House Price Poll of Polls, this makes North London house prices £62,345 more expensive on average compared to South London. The gulf between the two areas has continued to widen, from last years’ gap of £58,595.

Whereas the latest data from the Communities and Local Government department show UK house prices fell slightly in the first three months of the year.

Apparently From January through to the end of March this year house prices were 0.5% lower than for the previous three months.

Gross mortgage lending tumbled by 14% in April to an estimated £9.8 billion, according to the Council of Mortgage Lenders.

Interest Rates are not the only factor

According to research by the Halifax many homeowners may have benefitted from low interest rates, but they are currently facing their highest household costs for three years.

They say that Over the past year, the average annual cost associated with owning and running a home rose by 1.4% (£127) from £8956 in March 2010 to £9083 in March 2011.

So once again there are conflicting news items about property prices, and it’s not all bad news all of the time. This has to be good news for property developers.

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Read more about this subject here: Property prices ups and downs, again.

The Second Reading of the Energy Bill was delivered on 10 May, and it contains some interesting bits for landlords, and yes, even small landlords.

The Energy Bill is intended to be a change in the provision of energy efficiency measures to homes, and to encourage improvements to enable low carbon energy supplies.

In the second reading new proposals included amongst other things:

• From April 2016 landlords will not be able to refuse reasonable requests from tenants, or local authorities acting on behalf of tenants, to improve their property
• From April 2018 the government will make it unlawful to rent out a house or business premise which has less than an “E” energy efficiency rating.

Chris Huhne claims that

“Our proposals provide a voice for tenants living in poorly insulated, draughty homes. The Green Deal is a win-win opportunity for landlords by removing the upfront cost of work to upgrade the property making it cheaper to run, more environmentally friendly and ultimately more attractive to rent.

For those landlords who don’t take up the Green Deal then we will get tough so that by 2018 the poorest performing rented housing stock is brought up to a decent standard.”

There has been talk about financial support for landlords in making these changes, but nothing specific and nothing that you could write a cheque with.

So it looks like the pressure will be on the providers of EPC’s to make sure that rented properties do not fall below an E rating.  And who knows what will constitute a “reasonable request” from a tenant to improve a property.

Oh, and of course any landlord receiving such a request would still be free to use section 21 to end the tenancy, wouldn’t they?

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Read more about this subject here: Who would have thought that the Energy Bill would impact landlords