Blog Archives

ITN Interview with Jonathan Harris of Anderson Harris

29.05.2014

There has been a lot of debate as to whether Help To Buy has been fuelling a so-called ‘bubble’ in the property market.

Jonathan Harris, director of Anderson Harris, was asked whether this was the case on ITN News today. He said: ;The actual figures suggest that there isn’t a direct correlation at all, and if you talk to people across the country people are amazed that there is a bubble, especially if you’re outside of London and the southeast.’

He continued: ‘If you’re looking at the figures today, it shows 5 per cent of transactions attributable to Help to Buy in London and 14 per cent in the southeast, which is very low, especially if you combine the percentages with the average transaction purchase price of a Help To Buy property.’

To watch the interview, click here

Jonathan Harris
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Jonathan Harris

Bank of England threatens further mortgage curbs

19.05.2014

Nick Clegg, the deputy prime minister, suggested at the weekend that the government’s Help to Buy scheme could be pared back if the Bank of England believes the housing market is overheating.

Clegg made his comments after Governor Mark Carney warned about the dangers that a booming housing market poses to long-term financial stability.

The problem with suddenly scaling back Help to Buy is that there will be people who were planning on using it later in the year who may panic and accelerate their plans. Far from dampening demand, this could lead to a surge in interest in the scheme and potentially people jumping in before they are ready.

Likewise, fears that the Bank of England is going to insist lenders use even stricter underwriting criteria may also instill a sense of panic about getting a mortgage now, before any changes are made.

Borrowers should not panic and certainly shouldn’t buy before they are ready. Contact us for independent mortgage advice and ensure you can afford any mortgage you can take on, and that it’s the right time to do so.

 

Adrian Anderson
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Adrian Anderson

Act now to secure the best mortgage rates

02.05.2014

Mortgage rates are rising as lenders pass on the cost of implementing new mortgage rules onto borrowers. With banks’ mortgage processes taking longer, and more thorough in-depth interviews and increased staff training required, these extra costs must be borne by applicants.

Another issue is that funding costs are also on the increase, with Swap rates – the rate lenders pay to borrow from each other – continuing to rise. Swaps are now double what they were a year ago.

However, even with rising rates, mortgages are still historically extremely cheap so there is no need to panic. Short-term fixed rates may increase to compensate for these increased costs, but it is not the end of short-term fixed rates because they will still suit some borrowers.

It is important that borrowers seek advice to ensure they get the right mortgage for their circumstances and that it doesn’t take too long to process, particularly if they are on a tight deadline.

Jonathan Harris
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Jonathan Harris