Real news for first time buyers?

Will the provision of large loan to value mortgages really be the way to introduce confidence into the market and set the first time buyer’s pulses racing? This initiative does not solve the problem of severe job insecurity which is a hurdle that a large number of potential first time buyers are finding impossible to negotiate.

Lenders also have astonishingly short memories. The high % loan to value mortgages in the late 80’s saw properties quickly enter negative equity when the market dropped in value in the early 90’s. The same happened in more dramatic terms in early 2008.

Mervyn King has put forward his thoughts as to the problems in the economy and the spectre of 1.25% interest rates by the end of 2011 is now a real possibility, if not probability. Where will people find the extra amount of interest they need to pay should rates go up when there are few pay rises in any sector? The feeling in the property industry is that any significant rise in interest rates, with 1% being considered very significant, will kill the market stone dead whilst distressing huge numbers of house owners who have struggled through the last 24 months.

All in all, is this really the time for young first time buyers to saddle themselves with a 90 or 95% mortgage?


http://www.guardian.co.uk/money/2011/feb/17/mortgage-lenders-first-time-buyers

David Knapp, Partner
Residential Property

For the next generation of house buyers?

For dinosaurs like me, the concept of receiving mortgage information through my telephone is beyond my brain’s capacity!

My children however would lap it up.

Mortgage lenders are predominantly not interested in dinosaurs as they have a habit of becoming extinct and in any event dinosaurs can use their old fashioned ways to find the “food” source of a money loan that currently exist.

The next generation, well, the next but one (such as my children), will find this a very useful method of sourcing finance, providing they are able to allow themselves 5 minutes from the texts to their friends…..

http://www.guardian.co.uk/money/2011/feb/16/mortgage-assistant-app-of-week
Do you think this app will be a useful tool for house buyers? Let us know!

David Knapp, Partner
Residential Property

Do estate agents provide good customer care?

In her latest trip down the high street, Mary Portas “Queen of Shops” has been targeting businesses and questioning their customer care. So far we have seen her at the door of fashions outlets, furniture stores and mobile phone shops. This week the Secret Shopper’s target was estate agents.

Public perception of estate agents seems to be that they are deceitful, unscrupulous, manipulative and un-trustworthy. So what did Mary Portas consider they could change in order to provide their clients with better customer care?

She took on a family run firm of estate agents who didn’t initially appear to think that they needed to change their ways. However, as the exercise continued Mary proved to them just how important it is for the public to have clear, concise and truthful information. After all, buying a house is probably one of the biggest financial decisions anyone will make in their lifetime and people don’t like to be misled.

Mary put the agents through their paces in a country house where, after 15 minutes of training, they took the general public on guided tours. This proved to them just how important it is to have knowledge and expertise of the particular property they were showing off.

The agents took this on board and put it to good use, embracing the issue of their property details, radically changing them to reflect both the good and the bad aspects of the properties on their books. This attitude to selling is not only upfront and honest but to potential buyers it is straightforward, accurate, honest selling. No terrible clichés, jargon or estate agents patter.

Mary surveyed the prospective buyers who had viewed properties with the benefit of the new style property details. She was amazed to hear that 100% of those prospective buyers thought they were honest, trustworthy, specialists in their field with expert knowledge of both the properties and the area generally. This was a great result.

Honesty is certainly the alternative way for estate agents to market property and it will be asking them to change the habits of a lifetime but could the industry make the change to embrace these radical ideas? Refreshing thought!

Debbie Beswick