MORTGAGEnews
Mortgage and conveyancing news Seasonal slowdown softened by remortgaging
BTL morTgages
New BTL mortgage from MfB & Platform
A new buy to let mortgage product, which offers four-years fixed at 4.99 per cent, is available at up to 70 per cent LTV on loans up to £500K. “Direct feedback from clients with small property portfolios suggests that landlords are concerned about potential interest rate rises over the next couple of years. As a consequence, many are keen to lock in to a competitive, longer term fixed rate,” said Steve Olejnik, Head of Sales at Mortgages For Business. “We raised these concerns with Nick Allen, Product Marketing Manager at Platform who proposed that we work together to design a product to address these issues.” The resulting product is available for
purchases and remortgages on either interest only or repayment terms and is aimed at less experienced landlords with no more than five buy to let properties. “We are always keen to meet the needs
of the market and believe that offering this product on a semi-exclusive basis will help us to monitor the response under controlled conditions,” said Allen.
mortgagesforbusiness.co.uk
CoNVeYaNCINg Eight join the Conveyancing Association
The Conveyancing Association (CA), the trade body for conveyancing firms, has eight new members: Howes Percival LLP, Breeze & Wyles Solicitors LLP, O’Neill Patient Solicitors LLP, Thomas Legal Group, Russell & Russell, Martin Tolhurst Solicitors, Gordon Brown Associates and Advantage Property Lawyers. Many of the largest conveyancing
operations are already on board and are represented in industry focused groups. Membership is varied in that there are international, national, regional and local firms spread across every region in the UK, including Optima Legal, My Home Move, Goldsmith Williams, Shoosmiths and Eversheds LLP amongst others. Chris Tate, Partner at Howes Percival
LLP, said, “Our industry is facing a number of challenges in 2011 so we want to be a step ahead of developments to prevent them negatively impacting upon us.” Eddie Goldsmith, Chairman of CA, said, “It’s great to have these companies on
44 JANUARY 2011 PROPERTYdrum
board and it’s encouraging to see a real commitment from firms of varying sizes to help shape our industry. The addition of these new members so quickly after our launch really demonstrates the need for an association like the CA to represent firms who are serious about conveyancing. We’re currently welcoming membership applications from interested parties and will shortly be confirming further significant additions to our membership. “This additional support will help the
CA to facilitate conversations over the coming months with lenders and third parties on behalf of experienced and reputable firms that put conveyancing at the heart of their business.”
We need an association like the CA to represent firms who are serious about conveyancing.’
sUrVeYs
Strong remortgage activity dampened the beginnings of the seasonal slowdown in housing market activity in November, according to the latest research by Connells Survey and Valuation. The number of residential property
valuations conducted in November dropped slightly by four per cent compared to October. However, total valuations were down by just one per cent compared to November 2009 – despite market activity being significantly boosted at the end of
CHANGE IN THE NUMBER OF VALUATIONS CONDUCTED IN NOVEMBER 09 VS NOVEMBER 10
100% 80% 60% 40% 20% 0%
-20% -40%
2009 by the surge of buyers looking to buy before the end of the stamp duty holiday. An increase in the number of
remortgagors in the market played a crucial role in softening the seasonal slowdown. Remortgaging activity rose by six per cent compared to October – its fourth successive monthly rise. This represents a year on year increase of 92 per cent – albeit from a low base. Remortgaging now accounts for 23 per cent of Connells’ valuations – the highest proportion since December 2008. Ross Bowen, MD of Connells Survey
and Valuation, “Last November saw an increase in first time buyers looking to get a foot on the property ladder before the end of the stamp duty holiday. Despite the lack of such an incentive this year, market activity has remained reasonably robust so far. This has been driven by people looking to remortgage, but we expect the seasonal slowdown to kick in from now on.” “Availability and tighter lending criteria
remain key obstacles to re-invigorating the housing market, with the consequence that thousands of frustrated buyers are having to rent for longer.”
soFTWare Clear way ahead
The New Year is a good time for a strategic review to identify cost savings, improve efficiency and speed up completions. Agents spend a lot of money on promotion but only get paid if and when the property completes, so it is logical to look at ways to increase successful completions and reduce the time taken. The future for property transactions is
centred on commercially-led processes. David Dalby, RICS Residential Director agrees, saying, “RICS has long promoted the need for greater clarity and certainty in the home buying process.” Help is at hand in the form of Clear
Conveyancing, the flagship product of Clear, a software company for the property and legal services sectors. Clear Conveyancing takes sellers through a simple process to enable a buyer to exchange contracts, which is achieved by pre-packaging the seller’s legal file at the point the property goes on the market. Clear, 0845 643 6164.
Homeowners
Buy To Let First Time Buyers
Remortgagors Total
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