Alliance & Leicester says that home buyers putting off buying homes in expectation of a price fall on average lose out to the tune of a whopping 3,689 if they hang on for four years.One in five people play the waiting game because they feel houses are overpriced. But nearly three-quarters of buyers say prices actually increased while they waited. The average amount a property rose while home buyers pondered their decisions was 33,689 over the average wait of three years and ten months. Almost 19% say that the value of the property they had their eye on went up by over 50,000. Home buyers who waited over five years lost out even more as the average house price five years ago stood at just 101,550 compared with 189,8522 now, a price increase of 87%. Currently, 78%of people think that properties are overpriced and 15% are waiting for what they hope will be a fall in prices. Three-quarters of this group are prepared to wait over a year and one-third are prepared to hold off buying for over five years. Stephen Leonard, director of mortgages at Alliance & Leicester, says: “The research shows some home buyers are playing the waiting game to see if house prices will fall. In recent years most of those who waited to see if house prices would fall found they waited in vain, instead seeing prices rise by an average of 33,000. It remains to be seen whether waiting will pay off from now on.” Some bought a property rather than waiting, despite their belief that the housing market was overpriced. “One-third of these say the main reason they did not wait was that they had to move so were left with no choice in the matter.”
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In the run-up to Mortgage Day few would have expected lenders to win the dubious distinction of becoming the most irksome component of the regulated mortgage process.
Tory leadership contenders David Cameron and David Davis will open the CBI’s annual conference in two week’s time, the employers’ organisation has revealed.The event, which takes place at London’s Business Design Centre on November 28 and 29, will provide an opportunity for the Tory leadership hopefuls to address the country’s business leaders just one week […]
Buildloan. the intermediary division of Buildstore, has seen record business via its intermediary channel.Eddie Smith, head of mortgage distribution at Buildloan, says: “While self build is still seen as a specialist or niche area by many mortgage advisers the market will be worth in excess of 3bn this year. We expect to see another record […]
Pink Home Loans has launched an on-track product range in association with Freedom Lending.The on-track range is designed to get borrowers back to a prime rate and covers light to heavy adverse. Opening rates start from 5.94% and will reduce by 0.10% every six months, subject to payments being made, until the lifetime tracker rate […]
Jim Grant – Senior Product Insight & Technical Support Analyst There’s sometimes confusion around what triggers the money purchase annual allowance. Find out what does and what doesn’t trigger the MPAA. The money purchase annual allowance (MPAA) is a reduced annual allowance that can apply to contributions to defined contribution (DC) schemes. The following table […]
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