House prices could rocket by 10% in 2007 and 2008 and lenders will start to offer 8 x income to first-time buyers.This prediction was made at the Mortgage Summit in Jerez by economist and PR guru John Wriglesworth. Closing the conference, Wriglesworth told delegates that 2007 will be a year of two halves, with the first half seeing people rushing to sell before the introduction of Home Information Packs and the second half seeing first-time buyers looking to buy properties. He says: “First-time buyers are likely to wait until after June because they will not have to pay for HIPs, sellers will. First-timers will want to get as much information as they can about properties for free.” The Council of Mortgage Lenders recently readjusted its economic forecast for 2007. It is now predicting a 7% rise in house prices over the year. Wriglesworth believes Nationwide and Halifax will also raise their economic forecasts in the next few weeks. He adds that lenders will start to push up income multiples as demand increases. Wriglesworth says: “Next year we will start to see 7 x and even 8 x income multiples across the board.” He says that in 2004 it would have been shocking to see a lender doing 5 x or 6 x income multiples. But lenders are now offering 6 x multiples, which he says is a good thing as long as borrowers can afford it. He adds that lenders should not constrict the market by being prudent about income multiples.
The Financial Services Authority has published its Better Regulation Action Plan progress report, taking forward plans for reform of its rules first announced in December 2005. This is accompanied by three pieces of independent research into: * The incremental costs of complying with individual FSA rules in three sectors.* An estimation of the administrative costs […]
Home improvements and holidays are the most popular choices when spending a lifetime mortgage, Norwich Union research has revealed. News cars and top-up incomes alse feature highly in the list. The breakdown of what Norwich Union customers use their lifetime mortgage money for is as follows. Home improvements 77% Go on holiday 34% Top up […]
The Financial Services Authority is to follow up the work it did in the sub-prime market in 2005 with a second round of broker visits starting this September.Robin Gordon Walker, spokesman for the FSA, says: “We will be doing the next round of work into the sub-prime market later this summer, around September. We did […]
A comedy script to rival The Office is what I expect next month when lenders attempt to justify their excessive mortgage exit fees to the Financial Services Authority.
Out there lies a warm ocean of desert islands, sun, sand and palm trees, where individuals can choose how and when to tax-efficiently access their pension fund and realise the retirement dreams they have worked so hard for.
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