ALDERMORE LAUNCHES 95% MORTGAGE DEAL WITH HITACHI CAPITAL

Following on from a previous blog regarding Aldermore’s 100% mortgage I advise that they have now launched, in conjunction with Hitachi Capital (UK), a 95% LTV mortgage. Charles Haresnape, Managing Director of Aldermore Residential Mortgages said “The single biggest issue holding back perfectly credit worthy house buyers is their inability to raise a sufficiently large deposit. Aldermore’s recently launched family guarantee mortgage provides an option for borrowers seeking 100% loans and this scheme gives those who can raise a 5% cash deposit yet another route to home ownership.” As I previously indicated I have been in communication with Aldermore who advised that whilst they are currently working on proposals to launch in Scotland they have not yet fixed a date. I will let you know as soon as I have further information. I welcome this as another positive step towards releasing much needed mortgage funds into the market and getting the first time buyers back buying.

Linday Darroch
Head of Property

Unrealistic Asking Prices

I was recently offering on a property for a client which was being marketed through an online estate agency which will remain nameless.  I was very disappointed to note that their selling technique appears to be advertising properties at a big discount against the Home Report valuation ie 20% discount but when it comes to the sellers expectation there is in fact no discount.  I have raised this matter with the Advertising Standards Authority and will let you know response. This is another example of where the Home Reports have failed. 

Lindsay Darroch
Head of Property

The V&A – an important catalyst for the City to achieve its huge potential

I was delighted to hear that Kengo Kuma’s design for the V&A Dundee building has won an international industry award.

As readers of previous blogs will know I am a great ambassador and advocate of Dundee as I think it is a fantastic place to live and do business.  The V&A is an important catalyst for the City of Dundee to achieve its huge potential.

I believe that 2014 will be an amazing year for the City with the opening of the V&A, the continued development of the waterfront and the Commonwealth Games taking place in Scotland. This should generate a surge of people and businesses coming to the City which will have a huge positive impact on the local economy and the housing market in particular.  I have already heard of various hotel chains and restaurants that are now actively looking at premises in Dundee and with an increase in the quality of retailing on the High Street this will reinforce Dundee’s reputation as a destination City.  There has never been a better time to invest in Dundee in general and the local housing market in particular and I expect to see a surge of activity over the next couple of years.  Now if only we could get Dundee FC into the SPL!

Lindsay Darroch
Head of Property

Rents still being pushed higher, surveryor says

I was interested to read a recent report from the Royal Institution of Chartered Surveyors confirming that private rents continue to be driven higher.  The RICS have recently released a report which has confirmed that demand from tenants, many of whom have had their home buying ambitions thwarted, is continuing to outstrip the supply of homes to rent.  This is certainly a trend we are noticing in Scotland in general and Dundee in particular.  Feedback from my many property management and property investment clients is that rents continue to rise and there is no shortage of tenant demand, with one comment being “I could let my properties five times over”.  On the plus side, this shows that property investment is back to its purest form (using rents for income or to cover mortgage interest and costs with capital growth expectations being a bonus) and continues to be a very good solid investment for clients who get the appropriate advice.  As I have mentioned in previous blogs there is a downside to the economy and to society as a whole if ultimately the Government takes no steps to control this rental bubble and to assist first time buyers getting on the market.

Lindsay Darroch
Head of Property

The return of 100% Mortgages

I was very interested to read that Aldermore, a small bank set up in 2009, is to become the first British lender to offer mortgages to borrowers without a cash deposit since such loans were withdrawn during the financial crisis.  I understand that this product will be launched during September and will allow home buyers to borrow up to 100% of a property’s value as long as they have a parent, grandparent or guardian willing to support the loan.  The big High Street lenders have moved away from these 100% mortgages since the credit crisis but  Aldermore are looking to mitigate its risk by stipulating that 25% of the loan is guaranteed by parent/grandparent or legal guardian through a charge on their own property.  The deal will be open to borrowers across England and Wales up to a maximum loan of £250,000.00.  The guarantee will fall away after 10 years.  Whilst this product is currently only available to borrowers in England and Wales I think this is a very positive development and will assist first time buyers to get onto the ladder.  I advise that I have written to Aldermore to try and encourage them to come into the Scottish market and I shall let you know as soon as I receive a response from them. 

All in all a positive step.

Lindsay Darroch
Head of Property