mortgages

Housebuilders are currently promoting some superb special offers on a wide range of new homes in Herefordshire, both in the city and in quieter locations - giving house buyers of all budgets plenty of food for thought. Here are a few of the deals that have caught our eye this week.

Great news from Chelsea Building Society for house hunters hoping to secure a new mortgage with the security of a medium-term fixed rate. The lender has just introduced its lowest-ever rate for a five-year fixed-rate mortgage at a 70% loan-to-value (LTV) of 3.19%. There is also an offset option which carries a rate of 3.39%. The sting in the tail for these low rates is that both products have a fee of £1,495.

Last year was a tough year for those first-time buyers looking to step onto the ladder, unless the Bank of Mum and Dad was happy to provide a considerable deposit to assist. Existing homeowners enjoying the low bank Base Rate at a mere 0.50% were also facing hard times, as some realised the fact that house prices were dropping away leaving minimal equity in their properties. Doom and gloom.

Unless you're one of those lucky cash buyers, finding a mortgage is an essential step in the house buying process. The good news, whether you're a first-time buyer or a homeowner looking to move on, is that the mortgage market is becoming more competitive with every month.

Taylor Wimpey is kicking off a series of free Mortgage Myths events from 12 noon to 4.00pm at Redmond Brae in Kelty on Sunday 29th January, followed by others at Abbey Grange in Arbroath on Sunday 5th February; and finally

Relevant Properties

There was a rise in the number of first-time buyers in 2011, thanks partly to the fact that mortgage borrowing rates were at their most affordable for 14 years, research shows.

The Halifax says that mortgage payments for a new borrower in the second half of 2011 were at their lowest as a proportion of disposable earnings for 14 years, due mainly to cheaper property prices and mortgage borrowing rates.

People looking to purchase a property in the current economic climate are finding it more difficult than ever before - especially as homebuyers now have to provide a substantial property deposit that many simply cannot afford.

A recent report issued by the National Housing Federation called ‘Home Truths East of England' implies that a generation has been locked out of the housing market with private rental prices expected to rise by 21% in the next five years and the average Peterborough property costing £155,751 - 8.2 times the average income.

First time buyers looking to buy a new home, may be interested the learn that the Halifax has launched a new two year, fee-free, fixed rate first-time buyer mortgage at a borrowing rate of 5.99%.

The lender wants to help more first-time buyers gain a foot on the property ladder in 2012 by offering to pay the fees on their mortgage, as well as offering cashback of £500 to help cover other costs of buying their first home.

A new high loan-to-value mortgage scheme, which was set up by the Home Builders Federation (HBF) and the Council of Mortgage Lenders (CML) with a view to helping more people to buy a new build home, will be managed by Jardine Lloyd Thompson Group plc (JLT), it was announced today.

Despite wider UK economic and housing market concerns, the London property market is in a league of its own, with property prices at or near the peak reached at the height of the last property boom in 2007, due mainly to a general housing shortage.

While the supply of new homes coming onto the market remains low, demand for properties in London remains strong, thanks to a hike in overseas buyers and domestic buy-to-let investors seeking to cash in on rising rents.