Why The Best Pictures Are Essential When Selling Or Renting A Property

why-the-best-pictures-are-essential-when-selling-or-renting-a-property

As the saying goes, “A picture paints a thousand words”. This has never been truer than when selling or renting a property. Today’s housing market continues its upward trend. Demand for homes is high, and our currently-healthy economy means that property values are higher than ever. However, despite the positivity of the market, a property will not sell itself on its own.

In order for a property to be appealing to a potential buyer, it must be portrayed in the best possible light. There’s no better way to do that than in a photograph. But why are pictures so important? They help to generate more interest in a property, and encourage would-be buyers to take a closer look.

How Important Are Good Pictures?

Today, most properties are advertised on websites such as Rightmove, where they are seen by hundreds, If not thousands of people. Although a picture may not reveal the whole story about a property, its job is significant as it will be responsible for providing that all-important first impression.

Portable Technology vs. Professional Photos

It is true that today’s mobile devices offer the best quality for photographs than they ever have before. However, this doesn’t mean that they are the best option when taking pictures of a property for the purposes of selling or renting. Indeed, some investment is still required if the goal is to ensure that professional photos have been taken.

When high-quality photos are used to sell a property, the seller is sending a very important message to would-be buyers: that they took the time to think about how they would portray a property, took the necessary steps to prepare the property, and invested time and money into the right equipment to photograph it.

Picture Quality Can Affect Sale Value

Although it may be difficult to believe, the amount of money a seller gets for their home is directly related to the quality of the photos taken of that property. But why is this? The answer is simple: times have changed. Just fifteen years ago, a prospective buyer would pick up a printed brochure of a property that consisted of one or two printed photos and a typescript that revealed more information.

Today, however, we are in the middle of a digital age. The average person is bombarded with as many as 5,000 adverts in a single day. Add to that the fact that technology has allowed us to do more and be busier than ever, and our attention spans are shorter than at any other time in history, and it becomes very clear just how much a photograph impacts the sale of a property. Today, we take information in small chunks of words and pictures.

Length Of Time And Final Price

Ensuring that a property is photographed properly can actually affect how long that property remains on the market, as well as how much it is sold for. It therefore becomes necessary to ensure that any real estate agent chosen to sell the property offers professional property photography as part of their service.

In ensuring that an agent has the necessary experience to ensure that attractive and professional property photographs will be taken, a property owner can realise a higher final selling price and a shorter time wait time for property sale.

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Keep Buying: House Price Growth Sign Of Healthy, Growing Economy

keep-buying-house-price-growth-sign-of-healthy-growing-economy

House prices continue to rise in the UK. In London, prices have risen 11%, whilst in Cambridge and Bristol, 13% and 14% rises have been observed, respectively. Supply and demand is driving the rise. Behind the demand are several factors, including a rising divorce rate, which are creating the need for more single-person homes; as well as immigration and population growth.

Another reason for the price rise in UK homes is a combination of simple confidence and self-fulfilling prophecy. When people expect prices to rise, this causes increases to become a reality, causing even more confidence that prices will increase. Today’s reality is that market activity remains robust, despite predictions of a sudden drop due to economic uncertainty.

A Wealthier Feeling

Although higher house prices may seem like a negative thing, they are actually indicative of many positive occurrences. For example, higher house prices are a direct reflection of buyer confidence in their own financial stability. When a buyer feels wealthy and confident, they will spend more.

Homeowners can reap many benefits, including feeling as though they own a valuable asset, which they do. They can also ensure that this valuable asset benefits them well into retirement; when it’s time to downsize to a smaller home, the extra money from the sale can fund their retirement, or they can choose to enter an equity release scheme to produce needed cash.

Economic Resilience

Rising house prices mean that businesses are thriving. A higher turnover among small and medium sized enterprises in some UK cities has made them more prosperous. As well, this appears to be growing year on year. Another sign of economic resilience is coming from the charitable sector, which is experiencing a notable rise in charitable giving.

More Housing

As demand for homes in Nottinghamshire continues to increase, so too will the supply. Construction companies may need to hire more people to meet this demand, as well as obtain more materials, which fuels the growth of those businesses who supply the construction sector. More jobs and purchases only serve to strengthen the economy further, as well as address the severe housing shortage.

A Higher Return for Sellers

With demand for homes being higher than ever, sellers have a golden opportunity to get the best price for their homes. This is also a good time to either downsize by buying a smaller home, or purchase that dream home. Regardless what option is chosen, homeowners have the opportunity to spend their additional money on more assets or invest it, either of which will serve to increase personal wealth.

Lower Interest Rates Help

The Bank of England recently halved its interest rate from 0.5% to 0.25%, which has also significantly affected consumer spending. With such low rates, homeowners can increase their security by locking in a low rate. As well, these low rates mean that buyers can take their time to choose the best home for them, which translates into long-term security and a confidence boost.

The current housing market means that homeowners are in an ideal position to maximise their savings, whether they choose to do so by purchasing a smaller home, or by using the acquired value from a home sale to purchase additional investment products or assets.

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How To Get More Out Of Your Garden

how-to-get-more-out-of-your-garden

Although we don’t have summer all year round like other parts of the planet, the UK is known for its lovely English gardens. And when summer is in full swing, there is no place we’d rather be than outside. What better way to do that than to create another living space outdoors?

Not only is transforming your garden into another living space far less expensive than building an extension, but doing so also gives you the option to get as creative as you like. There are so many ways to create an outdoor living space; keep reading to get some ideas for living alfresco.

Get Social

Regular patio furniture is one thing; but sociable seating like sofas and easy chairs is quite another. Many shops have now embraced the outdoor living space, and so have far more options to offer than before in terms of living room-like items. Your garden gatherings can now accommodate any number of special guests. And no longer do you have to worry about ruined upholstery; modern outdoor living includes moisture-repelling fabrics and materials to ensure your guests always have a dry place to sit.

The ‘Wow’ Factor

If your garden already has one or more features like a wall or hedge, you can add lots of drama with lighting. However, there is far more to it than flipping a switch. For example, where you place your lighting can make a significant difference. On a textured wall, you can up-light, or place lighting near to the wall at its base. This will highlight the texture of the feature.

Other natural features like trees can also benefit from lighting. If there is a wall behind a tree, for example, you can place lights in such a way as to transfer the tree’s shadow to the wall. Another trick is to change the colour of a feature by ‘washing’ it with light.

A Comfortable Temperature

Many homeowners will spend a good part of their summer days outdoors. This means ensuring there is adequate shade during the day, and a place to take the chill off when the sun goes down. The former can be accomplished by installing a canopy or large umbrella over your favourite lounging area.

Fire is the ideal warmer for chilly summer nights, and there are many options for fire pits and chimeneas. Your garden room may also benefit from a patio heater, which can be purchased in virtually any size and style. Your outdoor heater can also do double duty as a focal point if your living area lacks other features.

Of course, there’s nothing like enjoying a chilly evening wrapped in a warm blanket. Draping a few blankets over your furniture will ensure that everyone can feel warm and comfy when using your outdoor space.

Easy Dress-Up For Your Outdoor Table

Anything goes these days, and your outdoor living area is no exception. Yes, your patio table may have seen better days, but when it’s part of your outdoor décor, it becomes instantly chic. Adding more rustic charm to this part of your outdoor space is easy; all that’s needed is to cut some fresh flowers from your garden and place them in a re-purposed pitcher of water, and voilà: instant country-style centrepiece.

A Chance To Decorate

Outdoor living spaces need accessories too. Today, there are many to choose from. From lounging Buddha’s to fairy lights and candles to wall tiles, there is an accessory to suit every personality.

If you want to tie your outdoor living space in with what’s going on inside your home, you can do this easily by choosing decorative accessories and furniture that echo the colour of the indoors. This will allow for easy flow from indoors to out.

With so many options available for expanding your space outdoors and adding value to your home in the process, there is no reason your dream of an alfresco living area cannot become reality.

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Great News For First Time Buyers As BOE Cuts Interest Rates To Historic Low

great-news-for-first-time-buyers-as-boe-cuts-interest-rates-to-historic-low

Despite suspicions last month that the Bank of England (BOE) was going to cut its interest rates, the 0.5% rate remained. This month, however, the BOE surprised all by halving official interest rates to 0.25%. What does this mean for those who are looking to buy a home for the first time?

All-Time Lows

If you’re looking to purchase your first home, you’ll be excited to know that fixed-rate mortgages are lower than they have ever been. There is no better time than right now to see your lender and lock in that rock-bottom rate. Another benefit of the new rate for potential home buyers is that by taking advantage of low rates now, they can enjoy lower monthly mortgage repayments for the long term.

Perhaps the best news about the interest rate drop is, again, for first-time buyers. If this is you and your deposit is 35% or more, you will be able to get a 10-year fixed rate mortgage for an incredibly low rate, something the experts are calling a “once-in-a-lifetime opportunity”.

Those who are already homeowners but who are planning to move before their term expires can also get cheaper rates by switching to a mortgage without early repayment cost fees.

Stronger Position, Plenty Of Time

First-time buyers will enjoy this new rate for many reasons, not the least of which is the chance to be in a stronger position for negotiating deals than they may have been previously. Those who are still looking for their ideal home need not worry, however; with rates as low as they are and a market that’s currently quiet, they can both take their time and enjoy less home-searching stress and place a lower bid than they were able to just two months ago.

Yet another benefit of these new rates for the first-time buyer? They have the time and the flexibility to walk away from anything they don’t consider to be a good deal.

Competitive Mortgage Prices On The Horizon

Would-be first-time homeowners who are having trouble deciding on the best buy may no longer have to sit on their hands, if experts are correct. These low rates are already inspiring mortgage providers to price competitively, which will provide some reassurance to buyers that they’re not only getting the best home to suit their requirements, but are also getting the best possible mortgage price.

More Choices For First-Time Buyers In The Future

The UK’s continuing housing shortfall means that new home demand will remain strong. When combined with the Bank of England’s interest rate cut, this means that there will be more options available for homes. Those looking to invest in their first property will find this option to be even more attractive than other asset classes.

Know What To Expect

For people who are still saving for a home or who have an existing mortgage, the best thing to do is to look at your current situation to see if there is any way the new rate cuts can benefit you. Current mortgage-holders will be contacted by their lenders and told how the cut will affect their rate and payments, if at all. Tracker mortgages already linked to the BOE base rate will see a quarter of a percent, something that hasn’t happened in quite some time.

The bottom line about the new rate cuts is that first-time home buyers will have more opportunities than ever to choose their ideal home at a very affordable rate.

Want to Add Value to Your Property? Expand Your Kitchen!

Want to Add Value to Your Property Expand Your Kitchen

If you’re planning on selling your property in the future, you may be considering making improvements in the form of renovations. Among those renovations which can result in the most value being added to a property, the kitchen tops the list. In fact, this room is still regarded as one of a home’s most important when purchasing a property. A recent study revealed that a small kitchen could put off as many as 25% of potential house buyers, so it makes sense to expand your kitchen into an attractive and ready-to-use space.

Complete Renovation, or Kitchen Alternatives?

The numbers don’t lie; although it may be very tempting completely to gut your existing kitchen in favour of installing a brand new one, the costs outweigh the return on this investment. A new kitchen will run you about £15,000 to install, but will only result in approximately £4,500 being added to your home’s value.

As well, the personal tastes of a buyer may vary widely from your own, which can mean that they’ll set to swapping out your newly-installed kitchen soon after they’ve bought your property. If you look closely, you may actually discover that there isn’t anything amiss with your current kitchen, save the need for a few minor repairs and cosmetic touch-ups. There may also be other areas of your home which need more attention than your kitchen does. For instance, an ageing roof will be a much higher priority when you’re selling your home than your kitchen will be. That being said, the far more cost-effective option is to expand your kitchen without renovating it.

Tips for Kitchen Expansion

There are some ways to expand your kitchen that have nothing to do with the installation of new elements. For instance, by simply ensuring your countertops are free of clutter, your kitchen can appear to be far larger than it actually is.

Increase the Kitchen’s Perceived Size

Another way to increase your kitchen’s perceived size is to look up. Is there a lot of blank space on the walls? If so, you may wish to consider placing pictures, plates or other attention-grabbing items high up on the walls. When someone walks into your kitchen, these items will work to draw their eyes upward, increasing the perceived space of the room. You can also achieve this effect with paint in contrasting colours.

Another simple way to increase the perceived size your kitchen is to lighten the colour of your cupboards. White will make the entire kitchen look cleaner and can also make it look larger. Another effect of painting your cupboards is that this also serves to draw the eye upward and create the illusion of increased space.

Buy a Kit

If you want to save money but really want a new kitchen, you might consider the purchase of a do-it-yourself kitchen kit. These allow you to easily install new elements yourself without the outlay of hiring a professional. Of course, some skill will still be required to do this successfully, so don’t attempt it if you’re not confident in your DIY abilities!

Use the Dining Room

The extra space you need to expand your kitchen could be right in front of you if you have a dining room. Today’s home buyer is looking for more space in the form of bigger rooms, according to a recent survey. And today’s families tend to do all of their interactions in the kitchen and living area. That being said, look for opportunities to create a completely different feel by using the space in your dining room or another nearby room that you don’t plan to use.

Go Free-Standing

The standard built-in kitchen remains a popular choice. However, when thinking of ways to expand your kitchen, the free-standing kitchen option should not be ignored. Free-standing elements like a corner shelf from another room can add more space to your kitchen without incurring the additional costs to purchase it just for the purposes of selling your home. Not only that but things like corner cupboards and plate racks can add instant attractiveness to your kitchen.

Regardless which tips you choose to pursue, the good news is that you don’t need to spend a lot of time or money to make your kitchen look brand new for interested buyers.

House Prices Slow Down But Are Still On the Increase

House Prices Slow Down But Are Still On the Increase

In the UK, property prices have been rising steadily for several years. One prediction is that just a decade from now, prices may be as much as 50% higher than they are currently. Although this seems like a lot, the fact that house prices rose an average 7.82% between 2013 and 2014 make that 50% seem far more likely to be reached less than ten years from now.

In the Midlands and the North of England, property prices are steadily slowing, meaning that in 10 years, the price of a property in London could easily reach a million pounds. Meanwhile in England’s South and East, property prices continue to accelerate. And amid all of these numbers, it seems that the benefits of investing in property in Nottinghamshire have gone largely ignored. There are actually many reasons for investing in property now.

The East Midlands Property Market Remains Lucrative

The UK’s property market is a primary driving force for the economy, and has always been a risky venture with all manner of peaks and valleys to prepare yourself for. But, it remains a lucrative venture, especially in the East Midlands, even if you only plan to invest in one property. Combined with low mortgage rates, this generates the perfect conditions for successful investing.

Tenant Demand on the Rise

For those looking to start a property business, a by-product of the continuing rise in house prices, as well as a desired change in lifestyle, are causing more and more individuals to look for lower payments by pursuing home and flat rentals. All told, the increase in tenant demand has been significant, with an average of five people competing for a single rental property. This increase is expected to continue.

As well, the increasing mobility of the workforce is seeing a higher number of people looking to share accommodation, which is both more affordable and allows for more money to be saved for a large property or other purchase in the future.

Benefits of Investing in Property

There are many benefits to property investment. Not only can you run a property business from anywhere in the world, but you can enjoy sustainable business growth that’s also profitable. As well, rents are currently at their highest in this country, which means ever-climbing yields for property owners.

For those looking to begin a property business, both direct and indirect investments are available. A collective property fund can allow would-be business owners to own property without the high cost. This is done by entering a pool of investors, from which a professional manager collects money and then invested into shares of property or in the property directly. Collective funds are available in many forms, including property unit trusts, REITs (real estate investment trusts) and offshore property companies.

Those who wish to purchase property for themselves can also enjoy many benefits. As current numbers predict, the value of a home will only increase over the coming years, which can mean a large return if the property is sold.

Is this information Enough to make a Decision?

Although the numbers are in, predictions about the property market have been made and the many benefits of property investing remain, some will inevitably wonder when is the best time to take the property investment plunge.

The truth is that now is as good a time as any to invest. But whether or not you do so is an individual decision. Investing in property does involve taking risks, but the key is to be satisfied with the level of risk being assumed, as well as to be able to manage that risk.

Property investment is not something that should be entered into lightly. Much consideration needs to be made before making the decision to invest. It may be that you need a professional to help you determine the best course of action before going forward.

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Can Remortgaging Give You a Better Borrowing Deal?

Remortgaging

We all want to have the opportunity to save a lot of money without having to sacrifice anything. And the way that many homeowners are doing this is by remortgaging their homes. But how much are they really saving? A recent LMS report revealed that up to £500 was saved by 32% of homeowners when they remortaged.

Indeed, remortgaging is proving to be very popular, thanks to the resultant record low rates of fierce lender competition. Add to this an increase in housing equity, and the conditions are ideal. However, can remortgaging always get you a better borrowing deal? That depends on your individual situation.

Is Remortgaging for You?

There are lots of great reasons for paying off your existing mortgage and switching to another, but the costs of doing this must be carefully considered. As well, there are several steps to take before you start hunting for a lower rate.

Look at your Reasons

As stated previously, the desire to save money is a good reason to remortgage, as long as the benefits outweigh the costs. Staying with your current deal could cause you to miss out on better ones which could slash the cost of your monthly payment.

Remortgaging can also be of benefit if you need to make improvements to your home or need some cash, as it will release some of your home’s equity.

Those who want to pay off their mortgage sooner may also choose to take the remortgaging route, as it allows for the term of the mortgage to be reduced, freeing you from debt that much sooner.

Finally, remortgaging makes sense if something has changed with your financial situation. Some events which could be considered as a financial change could be the starting of a new job, having children or a similar significant life event. In these situations, remortgaging can provide the peace of mind of a no-surprises fixed rate.

The Costs of Remortgaging

Although remortgaging can appear to be a great deal at the outset, an important thing to think about are the fees. And so when considering this route, all charges spanning the length of the deal and your monthly repayments should be added up.

There are several other fees associated with remortgaging that need to be considered. Some of these are the valuation fee, mortgage account fee, and exit fee. Depending on the value of your property, the value fee can range from between £150 and £1500. The mortgage account fee is what pays your lender for the administration costs they incur during the process of remortgaging your home. This cost will fall between £100 and £300. The exit or closure fee is what is paid to your lender upon the repayment of your mortgage. Unless you’ve already paid the mortgage account fee, your exit fee will fall between £75 and £300.

There are 8 additional charges which could potentially apply to your remortgage, adding up to a possible £3000. The final cost is dependent on which fees and what amounts apply to your particular situation.

Property Value

Has your property’s value changed? This is a crucial piece of information to have because the higher the value of your property to your existing mortgage, the better the deals that may be available to you. There are numerous sources online where you can check the value of your property, such as Zoopla and Rightmove.

What’s Available on the Market, and Calling an Expert

Looking at the current market and putting your current payment amount against what you could be paying is a good way to see what kinds of deals are available to you. Once you’ve found your ideal rates, you may be able to get a good deal from a mortgage broker, who can access mortgage rates not offered on comparison resource sites. They can also assist with lending a pair of eyes to your calculations and helping you ensure you’re making the best financial choice for you.

Because every homeowner’s situation is so different, the only way to tell if a remortgage is right for you is to crunch the numbers. If the benefits of switching to a different deal outweigh the associated costs, then remortgaging could definitely be in the cards for you.

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A Brief Guide to Gas Safety for Landlords

Gas.

Gas safety is serious business, and landlords have been warned by the AIIC not to treat it lightly. Recent occurrences have seen landlords being fined for safety failings and for letting properties with dangerous gas boilers and equipment not checked by certified engineers.

Although it is unclear why there have been more of these incidences in the past year, the AIIC is now urging landlords to ensure that all gas systems in their rental properties, including boilers and gas appliances are safe. Carbon monoxide detectors have now become a requirement.

What can you do as a landlord to ensure that the gas appliances in your rental property are safe and working correctly? This guide will help.

Your Requirements as a Landlord

As a landlord, your duty is to ensure the maintenance of all flues and gas fittings to ensure their safe condition. This includes ensuring that all gas appliances are regularly and properly serviced according to manufacturer’s instructions or on the advice of an engineer registered with Gas Safe. Annual safety checks should be carried out on each appliance and its flue before the start of any new lease, or should have been inspected within one year before the start of the new lease. Appliances installed in a rental property for under 12 months will require inspection within one year of installation.

Keeping Records

Safety check records for each appliance must be kept for two years or more, and a copy of the latest safety check issued to existing tenants within 28 days of check completion. If new tenants are moving into the property, they must be given a copy of the record prior to moving in.

Taking All Reasonable Steps

It is the landlord’s duty to ensure they’ve taken all reasonable steps to ensure the safety of tenant appliances. This can mean requesting access to a tenant’s rental property in written form, including this access in their rental contract, or any other reasonable means.

Safety is not the Tenant’s Duty

Overall, the responsibility of ensuring compliance with the law belongs to the landlord. The landlord cannot delegate maintenance or safety check duties to the tenant, even if a managing agent is being used. Sub-let properties require the landlord to retain safety duties. However, these duties may overlap with those of the individual who sub-lets. In these cases, communication between the parties to ensure current checks and records are being kept is strongly recommended.

Risk of Prosecution, Penalty and Imprisonment

Not taking steps to maintain the gas appliances in tenant residences can result in injury and loss of life. Fines for not maintaining tenants’ gas appliances can reach £20,000, and offending landlords can be placed in prison for non-compliance. In some cases, both a fine and an order for imprisonment may be given. Unlimited fines may be the result of the case if is referred to the Crown Court.

Checking Certification of Engineer

Any engineer entering a premises to conduct maintenance and safety checks on an appliance must be confirmed as certified by the landlord. Engineers should be willing and able to provide a current card containing their photo, company name, registration number, security hologram, business registration number and start and expiry date. The back of the card should contain detailed information about the kind of gas work the engineer is registered to do.

If ever in doubt about the certification of an engineer, landlords can call the Gas Safe Register during office hours on 0800 408 5500, or visit http://www.gassaferregister.co.uk.

Failed Appliances

Any appliances which fail the safety check must be re-examined and the problem rectified by a certified Gas Safe engineer before using the equipment again. No appliance deemed unsafe should be turned on or placed into use until the identified problem has been rectified.

Should the smell of gas be detected, immediately open all windows and doors. Next, you’ll need to ensure the gas supply is shut off at the meter control valve. If this valve is unable to be found, and gas continues to leak, call the Gas Emergency Freephone Number 0800 111 999.

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What Makes a Great Estate Agent?

What Makes a Great Estate Agent

When considering using an estate agent to buy or sell your property, it can be a daunting prospect to find a company that suits your needs. Estate agents can make the process of purchasing or selling a property a dream or a headache, but knowing what makes an estate agent great can take the hassle out of engaging with the property market.

An estate agency can handle the tricky processes of conveyancing, arranging and carrying out property viewings, negotiating offers and other complex administrative tasks particular to buying, selling and renting property, so finding an estate agent that is well worth investigating. Below are some tips on what makes an estate agent great, and how you can find a company that best suits your requirements.

A great estate agent offers local expertise

Though there are many good estate agent chains that operate across the United Kingdom, a property buyer or seller should select an estate agency that has good local expertise. By choosing an estate agent that has first-hand knowledge of the area in which you wish to purchase a property, you will be assured that you will be offered options that are reflective of local prices and property trends.

A great estate agent is communicative

According to estate agency software provider Dezrez, UK property buyers and sellers overwhelmingly prefer having a personal agent to deal with their property needs. Whether an agency offers you a particular contact or not, good communication and a personal service are very much part of a great estate agent’s repertoire.

A great estate agent will also provide easy access to information and a quick response time to enquiries. An up-to-date website or web portal, as well as several channels of communication such as emails, web chats, telephone calls or face-to-face meetings, are important factors to look for when selecting a worthwhile estate agent to handle your property.

A great estate agent is reliable and understanding

The difference between a good and a bad estate agent can be as simple as reliable service. When engaging with an estate agent, you should feel that your needs are being met, and that your particular property brief is being adequately met. If you require a four bedroom home in a certain location with a particular budget, a great estate agent should offer you properties that meet your criteria, rather than offering you properties that really do not make the grade.

A good estate agent will also ensure that they are on time and available for appointments to view property, as there is nothing worse than being let down when you have travelled to see a property first-hand. If you are selling your property, your estate agent should act as a responsible representative of yourself as a vendor, so punctuality and reliability are key.

A great estate agent makes your property look good

If you are selling your property, a valuable estate agent should take the time to put effort into your sales listings. Attractive photography, excellent descriptions of the property, and the appearance of your property advert on web portals such as Zoopla and Rightmove are vital for a good chance of selling. Great estate agents make your property look good, rather than making putting it in a bad light.

What makes WA Barnes a great estate agent?

WA Barnes is an estate agent which ticks all the right boxes. Our agents are punctual, helpful, and willing to go out of their way to make your property dreams come true. We pride ourselves on being local experts, and we take your property requirements seriously. Contact us now for a conversation with our agents and a reliable service that will fulfil all your property needs.

New Mortgage Options Expand for High-Value Borrowers

New Mortgage Options Expand for High-Value Borrowers

The housing market is expanding its options for borrowers looking for more range in their mortgages. New products and larger loans are now on the table for those looking to buy into property of a higher value.

The best-ever choice of mortgages for buyers

Banks and building societies are now offering high-value borrowers more appealing mortgage packages to draw investors and higher net worth home buyers into the property market. Interest-only mortgage models are making a comeback, with higher net worth individuals being targeted for this renewed option.

Interest-only Mortgages: a good option for high-value properties?

An interest only mortgage requires monthly repayments, but only enough to cover the interest on the mortgage amount borrowed. The loan value itself is not reduced, and the full amount of the loan will need to be paid back at the end of the loan agreement period. Though interest only mortgage options dropped in popularity after the 2008 financial crisis, high net worth borrowers are now more likely to benefit from an interest only or part and part mortgage.

The interest only model is seen as riskier by lower value borrowers, but for higher worth individuals, a complicated income stream or a collection of assets of a higher value might make interest only more appealing. Many interest-only mortgage loan options come with a lower initial deposit value, making it a potential option for those looking to spend less in the short term, and more in the longer term. It may well be suitable for those looking to buy a property to rent it out as a private landlord, before selling the property at a later date to pay off their mortgage loan agreement. This would make money and help savings in the short term, and be affordable in the long term.

Short-term Mortgages

Leeds Building Society has widened its range of financial products for high-value borrowers, making mortgage prospects more attractive. The financial institution now has a two-year interest only mortgage, offered at 1.6% for a loan to value ratio of up to 50%. It also offers a 1.7% two-year mortgage, part fixed rate and part interest only, for a loan to value ratio of up to 75%.

The new financial products are offered as an attractive prospect for those interested in investing in property, or perhaps for those buyers who expect a significant increase in their income in the future. If the home buyers are expecting to have saved a significant sum during the mortgage loan period, it may be a cheaper option for them in the short term only to pay off the interest on their loan, rather than using a standard repayment package.

The interest only mortgage is ideal for those seeking to invest in property, whilst the part and part mortgage might be more appealing to home buyers. The products are made even more appealing as they come with a free valuation, legal services with fee assistance for remortgages, and a fee of only £1,999.

Other banks and building societies that offer this type of mortgage loan can be found on the high street. TSB, Halifax UK, and Skipton Building Society are just some of the financial institutions offering interest only loans. Those looking to take out a mortgage loan should be aware of the potential requirements for this type of loans; for example, a minimum income of £75,000 per year in salary may be required before the loan can be offered. Before taking out a mortgage loan of this type, borrowers should consult financial advisors and be aware of the risks and rewards of this kind of mortgage option. It is also advisable to explore the options available from different banks and building societies to find the mortgage loan that best suits your needs.