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House prices rose by 0.8% in Aug

according to the latest Halifax House

Price Index. The Index shows

House prices increased by 0.8% in

Aug. the 2nd successive monthly rise

& 4th in the first eight months of

2009.

Prices largely unchanged over the

first eight months of 2009 as a

whole. Avg house price in Aug

£160,973 compared to £160,861 in

Dec 2008.

Prices in the three months to August

compared to the previous three

months were 1.7% higher. This is the

biggest increase on this underlying

basis since July 2007.

The proportion of disposable

earnings devoted to mortgage pay-

ments – a key affordability measure -

has fallen significantly over the past

21 months. Nationally, typical such

payments for a new borrower have

fallen from a peak of 48% of average

disposable earnings in 2007 Q3 to

29% in Aug 2009. Notably, mort-

gage payments relative to earnings

are now below the long-term average

of 35% recorded over the past 25 yrs.

Tracking Market Improvements

Annual growth for the first time since 2007—CML According to the latest Council of Mort-

gage Lenders' survey, at £14.5 billion,

total gross lending rose significantly for

the second month running, but was still

42% lower than in July last year. Within

this, house purchase lending accounted

for 56,000 loans totalling £7.5 billion - up

from 47,000 loans totalling £7.1 billion in

July last year. Remortgaging, however,

remained unsurprisingly weak. The rise

in house purchase lending in July was

concentrated more heavily towards home

movers than in June, when the largest rise

was seen in first-time buyer activity.

There were 20,400 first-time buyer loans

and 35,700 home mover loans in July, up

18% and 28% respectively on June. But

compared with a year earlier, the rise in

first-time buyer numbers was higher, up

22% compared with a 17% rise in the

n u m b e r o f m o v e r s .

In terms of product choice, over three

quarters of mortgages taken out in July

were at fixed rates, with borrowers able to

lock in to an average fixed rate of 4.7%,

well below the average of 5.57% over the

past decade.

Commenting on the latest survey data,

CML economist Paul Samter observed:

“It's tempting to call the turn in the

mortgage market at this point, and there is

certainly concrete evidence that lending for

house purchase is increasing. But there are

still constraints affecting the lending

industry's capacity to fund increased lend-

ing, as well as less consumer motivation to

remortgage for the time being. The overall

lending picture is likely to stay relatively

subdued for some time, especially as the

wider economy is far from robust as yet."

SEPTEMBER

Market focus on positive market news

from

Belgravia

UK market 1st September at a glance

-9.6%

10

12

0.5%

-37.9%

21%

House price growth

Time to sell (weeks)

Viewings per sale

Base rate

Mortgage lending

Repossessions

July

-7.7%

9

11

0.5%

-4.5%

21%

Aug Sep

-6.7%

9

11

0.5%

32%

11%

Lending index % Year on Year

Repossessions index % Year on Year

Even RICS sees improvement

Sentiment in the housing market contin-

ues to improve according to the latest

RICS UK housing market survey pub-

lished today Significantly, 8% more char-

tered surveyors expect prices to rise

rather than fall over the next three

months, the highest reading for this series

since April 2007.

The improved optimism for prices can at

least partly be attributed to the fact that

increased interest from new buyers has

not been matched by supply coming onto

the market. The levels of stock on estate

agents books remains very low.

“Heard about the Home Buyers Tool Kit?

www.belgraviawm.com”

Mortgage lenders are increasingly imposing a

percentage application fees on their fixed rate

products, according to MoneyExpert.com. Over the

past year the number of mortgages charging a per-

centage fee has increased from 43% of the market

to 49%. Percentage fees vary from as much as 2.5%

of the mortgage loan to as little as 0.4%. The

average percentage fee comes in at 0.89% and on a

typical home loan of £150,000 this equates to a fee

of £1,335.

There are currently 472 products charging a set fee.

The highest charge on the market has increased

significantly. Last year a number of lenders charged

up to £1,999 but today the highest figure on the

market is £2,499 from Bank of Scotland, one of the

bailed-out banks, signifying an increase of 25% on

the highest market fee. (This product is for borrowers

looking to borrow up to 90 per cent of the value of

their home.)

The total number of products charging a set fee has

increased from 405 to 472 as the market has

expanded. The increase consists largely of the intro-

duction of new tiers of fees by the banks. Last year

for example there was only one mortgage charging a

fee of between £100 and £200 but today this figure

has increased to 49. Similarly, a year ago there were

17 products charging between £700 and £800 but

today there are 61 products.

The average LTV has fallen from 91% in

August 2007, to 74% today. As a result

the average deposit required on a

£150,000 mortgage has increased from

£13,500 to £39,000. Borrowers looking

for fixed rate mortgage deals have seen

an 83% drop in the number of deals

available to those with just a 10%

deposit. By comparison, the number of

deals for those with a 40% deposit has

increased by a staggering 2,244%.

Michelle Slade, spokesperson for

Moneyfacts.co.uk commented: "A three

Mortgage fees and take up rates

According to psychologists, at times of crisis, humour can provide a vital way of expressing frustration at a baffling situation…

How do you define optimism? A banker who irons 5 shirts on a Sunday. Sara, London,

What do you call 12 investment bankers at the bottom of the ocean? A good start. Niall Davidson Petch, Lincoln,

I had a cheque returned earlier. "Insufficient Funds" Mine or the banks? Pyers Symon, Worcester

Latest news, the Isle of Dogs Building Society has collapsed. They've called in the retrievers. Jez, Frodsham

Market focus on positive

market news

Belgravia Wealth Management is an introducer to GSR Finance which is an appointed

representative of Home of Choice Ltd which is authorised and regulated by the Financial

Services Authority

Your home may be repossessed if you do not keep up repayments on your mortgage

View our free Home Buyers Tool Kit

www.belgraviawm.com

fold increase in the size of the average

deposit is likely to hit first time buyers

the hardest. While the number of fixed

rate deals slowly increases, the number of

variable deals remains low. Lenders are

worried about the rising risk of customers

defaulting on variable rate deals when

base rate starts to rise. On a £150,000

mortgage, borrowers with a tracker deal

will see their monthly repayments in-

crease by over £300 if base rate returns

to 4%, an increase that may be a step too

far for many borrowers”.

Average deposit up £25,500 since August 2007 Source: Moneyfacts.co.uk 10.8.09

FIXED Aug

2007 Aug

2009 %

change 100% 163 6 -96% 95% 585 9 -98% 90% 455 77 -83% 85% 109 165 44% 75% 252 342 35% 60% 9 211 2244%

variable Aug

2007 Aug

2009 %

change 100% 75 2 -97% 95% 397 0 -100% 90% 371 19 -95% 85% 98 22 -76% 75% 182 150 -18% 60% 13 103 692%

The number of mortgages approved by

the major banks in Aug was up 81% from the

same month a year ago when the housing mar-

ket was in a slump. The British Bankers' Asso-

ciation (BBA) said the annual rise was exag-

gerated by the low lending levels of a year ago.

Approvals for house purchases in Aug dipped

slightly compared with July after 7 months of

month-on-month rises. There were 38,095

mortgages approved for house purchases in

Aug by the major banks, compared with

21,001 in Aug last year. Net mortgage lending

rose by £2.8bn in Aug, similar to the average

of the previous 6 months and a year-on-year

growth of 4.6%.

for a bonus? The average loan is

under 70% which makes the bank

balance sheet look very attractive

indeed. The rationale for lending is

profit and security . On this basis

how long before lending returns ie

to around 90% for everyone? In a

capitalist market, needs or demands

are met by those who wish to benefit

by supply…

The average rate for first-time buyers

wanting to borrow at 90% LTV is

priced at a 4.25% margin over the

cost of funding, according to Money-

facts At the same last year the same

two-year fixed rate deal at 90% LTV

was priced at an average rate of

6.63%, with a margin of 1.34% over

swap rates. On this basis banks are

now making loads of money - time

Gross mortgage lending shows stability


market news

Do banks have the money? Yes,

Do they have strength in their own

balance sheets? Yes,

Can they make money? 4.25%...Yes

What about risk? prices are rising due

to under supply so valuation risk is

reduced (unless Connells value)

Unemployment? This can force the

market to move as discussed before.

Mansfield Building Society 100% At the beginning of this year news papers commented that 100% mortgages have gone forever. Nothing is forever! The

100% mortgage never really went away. Lenders have offered shared equity & shared ownership loans at 70% to 85%

LTV where the applicant is required to offer NO deposit - in short 100% lending to the applicant. Halifax have only

just stopped doing this and now require a personal 5% stake (RBS still allow 100%). It seems incredible that the news

papers should catch on to a new 100% deal offered by the Mansfield. “The Mansfield Building Society has launched a

shared ownership deal offering first-time buyers up to 100% LTV on their share of the mortgage The building society

is working with South Yorkshire Housing Association on the initiative, where buyers initially own up to a 60% share of

the property. Rent is then paid to the housing association on the remaining share, with buyers able to increase the share

that they own in stages.” It shows how the media can get stories out of perspective.

Banks now making 4.25% on some loans


market news

RBS lending

RBS currently permit 100% lending on shared equity agreements where as Halifax now require

a personal 5% stake

RBS value according to surname:

A - H valuations go to Legal and General (inc Value Nation)

I - O valuations go to E-SURV (inc Value Nation)

P - Z valuations go to Connells

This means that if your surname begins with an A...O your house with RBS mortgage will value

up, if your surname begins with a P....Z then your RBS mortgage is likely to fail due to down

valuation !

VALUATIONS

We will fight down valuations where we have the evidence to do so.

The evidence will be sent with a formal complaint to the RICS Chairman.

In the past few months this course of action has resulted in 7 valuers being suspended, 6 were

suspended by Nationwide from the Countrywide Valuation Company


market news Lap Top System

• We have a brand new lap top ready for every sales negotiator

• The system has a new look and feel - remains easy to use

• The email address will be the name of your site @bryantmac.co.uk

• The tools available on the system can be sent direct to your visitors via a click

on the “Send Site” button, simply input the senders email address.

• 86% of people use the net to search for their new home, this gives you a better

chance at retaining those customers within your brand

• Mousesale.co.uk has agreed to proactively market your PX properties

• Special deals can be showcased using turn page technology

• Don’t forget that you have Credit Expert as another tool. Simply click on the

logo and you can get details about your own credit file. They charge £5 per

month for a continuous service.

Coming soon

• More free valuation tools for your personal use

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