A housing market to be proud of

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "A housing market to be proud of"

Transcription

1 A housing market to be proud of

2 Introduction This document looks at the mortgage market and its vital contribution to delivering a successful housing strategy. Mortgage lenders play a key role in all housing tenures. As well as funding owner occupation, lenders contribute to private rented accommodation, through buy-to-let mortgages, and they also provide funding for the social housing sector. After five years of flat housing markets, low transaction levels and concerns over the availability of mortgage finance, 2013 saw a marked recovery with over one million home purchases for the first time in five years. Total lending reached 176 billion, around 20% up on 2012 and this is expected to climb to around 210 billion in We have seen the return of 95% loan-to-value mortgages; lenders are offering products, both under Help to Buy and independently of the government scheme, to assist those who can afford a mortgage but only have small deposits. First-time buyers have returned to the market. The number increased by 23% in 2013 and looks set to grow further in 2014 to a six year high. So there are no longer worries over the availability of mortgage finance. But house price inflation, especially in London and the South East has become a greater concern. Recent interventions by the Financial Policy Committee of the Bank of England have been targeted at reducing some of these pressures; and we have also seen a new regulatory regime introduced by the Financial Conduct Authority designed to ensure that mortgages are only given to borrowers who can afford to service them. The long term objective should be a sustainable UK housing market which allows people across the country to realise their aspiration of home ownership (79% of British adults aspire to be home owners); but also gives choices for those for whom outright home ownership is not a realistic tenure and who will look either for rented accommodation or some form of shared ownership. 2

3 We also need a housing strategy which acknowledges that the current housing market has fragmented into a series of disparate regional (even local) markets in which there are different conditions and challenges. A first requirement is more supply of new homes. Our house building programme needs to be ambitious, consistently delivering between 200,000 and 250,000 new homes each year for the next 10 to 15 years. But we also need to make best use of our existing housing stock; considerable wealth is already tied up in housing that could help people support themselves in older age; and ease the mismatch between supply and demand. Lender funding A housing strategy should command strong crossparty support and be sustainable beyond one parliament, with long term goals, offering clear and consistent policy direction and avoiding unintended consequences. We need regulation and other market interventions which are proportionate and appropriate, those which work centrally and impact locally. And regulatory measures need to dovetail with government policy and support the long-term health of the UK economy. Looking through the lens of the mortgage lending industry, we now consider what those challenges might be from the perspective of the young, the old, and the inbetweeners. We want the next government to: Link the disparate strands of a housing strategy into a coherent whole Acknowledge the need for better links and transitions between tenures Work with the industry on how to best use existing housing stock Refrain from microintervention overkill home-ownership 1.3 trillion private rented sector 178 billion social rented sector 60 billion 3

4 The young A key driver of the housing market recovery has been the growth in lending to first-time buyers. Average first-time buyer loan to value Affordability pressures along, with a tightening of loan-to-value criteria, resulted in the number of mortgages taken out by first-time buyers falling from more than 530,000 to below 200,000 in 2009, with more and more resorting to the Bank of Mum and Dad and typical deposits rising from 10% of a purchase price to 25%. However, transactions by first-time buyers were among the first to show signs of recovery. The number increased by 23% in 2013 to 269,000 and looks set to grow further in 2014 to a six year high. There is increased availability and reduced pricing of higher loan-to-value mortgages. Currently the average first-time buyer deposit is around 18%, and around 8% of first-time buyers are now taking out mortgages with loan-to-values of 95%, whether that be with lenders who are signed up to the government s Help to Buy scheme or lenders who are working independently of the scheme. But even so first-time buyers are still languishing at only around half their long-term average of around half a million. Why? A key element is the sheer cost of housing; house prices have doubled in real terms since the mid-1990s, while real earnings have only risen by around 21%. The continuing shortage of housing supply is likely to buoy up prices and bear down on transaction numbers in the foreseeable future. Even high loan-to-value mortgages cannot alone solve the problem. The size of deposit (particularly in London and the South East) also remains a significant barrier to many would-be firsttime buyers, despite government schemes. 83% Average first-time buyer mortgage loan 122,

5 Average first-time buyer deposit 25,000 Average age of first-time buyer 29 years old Low-cost home-ownership schemes have the potential to allow more young people realise their aspirations of becoming home owners. Part ownership schemes need to be made easier to understand which may mean that there are fewer varieties of them. It should be recognised that for some, part ownership may be a long-term, permanent tenure in its own right. The idea of shared ownership deserves further examination to remove some of the obstacles to its growth and to encourage lender participation. Policy makers need to take into account lenders concerns especially about the sale of shared ownership properties if we are to expand the market, increase lending volumes, and provide more long-term funding commitments. With the decline of owner occupation from 70% to 65% of all households, the private rented sector is playing an increasingly important role in today s housing market. Buy-to-let financing now accounts for 15% of total mortgage lending. We support a sensibly regulated private rented sector supported by a diverse range of providers capable of meeting the varied demands of tenants. Based on demographic trends, constraints on housing affordability and on the growing demand for flexible accommodation from a mobile workforce, this sector is likely to continue to grow. Government interventions must preserve the flexibility of this tenure; and be attractive to both institutional and private investors to encourage new supply. We want the next government to: Focus on measures that increase the supply of housing in all tenures, enabling more young people to gain a housing foothold Reform stamp duty to reduce its burdens, distorting effects, and unintended consequences Recognise that, for many, shared equity and shared ownership may not be a stepping stone to full home ownership but a permanent tenure in its own right 5

6 Stamp duty The combination of a recovering housing market and the fiscal creep associated with stamp duty affects an increasing number of first-time buyers, and indeed other purchasers. Home buyers paid 4.9 billion of stamp duty in 2012/13 compared with the previous peak of 6.7 billion reached in 2007/08 even though there were only around 900,000 transactions compared to 1.6 million in However, the way in which stamp duty is levied has not been reviewed for a long time and its current impact is market-distorting, especially because of the slab method by which it is calculated. 8,000 6,000 4,000 2,000 Yield from residential stamp duty, m The impact of the tax in all parts of the UK should be reviewed. 2001/ / / / / / / / / / / /13 Lower band 250, ,000 Above 500, m Above 2m Source: HMRC 6

7 The old One of the consequences of the bulge in postwar baby boomers born in the years is that the UK now has an ageing population. There are 11.1 million people aged 65 or older, a number that has grown by 1.6 million over the last decade. By 2023, one-quarter of all adults will be aged 65 or older, and their profile will be inevitably shifting towards being very old. The number of new mortgages taken out by those aged 65 and over is modest and declining. However, the stock of mortgages held by borrowers in this age group is larger (around 4.5% and pushing higher). 160, , , ,000 80,000 60,000 40,000 20,000 Number and proportion of mortgages extending age 65 and beyond 35% 30% 25% 20% 15% 10% 5% The number of people borrowing into retirement has grown in recent years, partly because some customers are taking out loans later in life. There has also been an increase in the number of those taking out mortgages for longer terms. The upward drift in state pension age, and the growing expectations that people will retire at a later age than before has had an effect. However, while lending into retirement is becoming more prevalent and increasingly necessary, the regulatory regime for the UK mortgage market does not help. Lenders are required to take into account the effect of foreseeable changes in circumstances, including likely retirement age when assessing affordability. 0 0% 06-Q1 07-Q1 08-Q1 09-Q1 10-Q1 11-Q1 12-Q1 13-Q1 14-Q1 % of total (RHS) number (12 month moving average) (LHS) Source: CML 7

8 We want the next government to: But in offering loans to borrowers that may extend into retirement, lenders must balance all of the regulatory and legal requirements with the needs and aspirations of the borrower, as well as the overarching need to lend responsibly and treat customers fairly. Lenders are understandably cautious in interpreting the regulator s rules. This will inevitably impact on the extent to which the industry feels it is able to service this market. It is therefore important for regulators to revisit both the conduct and prudential rules around this type of lending so that our ageing population can obtain the right sort of product for its needs. This becomes even more necessary following the chancellor s Budget announcement of changes to pension rules which have led to speculation that one result could be an increase in housing market activity and borrowing by older customers. It is too early to predict how the market may be affected by the change in rules. But policy makers must ensure that pension and housing policies are in harmony. There is considerable wealth tied up in housing stock. 83% of over 60s in England own their own home and 64% own their home without a mortgage. This amounts to a massive 1.23 trillion in unmortgaged housing wealth. The potential for developing ways in which this wealth can be put to good use to support people in old age needs to be released. The equity release market and the residential mortgage market should work closely together to find ways of maximising that potential as this could help make better use of housing stock and housing assets. At present the two are separate entities with different regulatory regimes. There may well be an opportunity for a new market to be developed that serves the age group in a different and better way. Policy makers should support and indeed encourage the development of a fully functioning large scale market in this area. 83% over 60s living in England own their own homes 1.23 trillion unmortgaged housing wealth 64% own without a mortgage Source: Demos Address the difficulties in lending into retirement resulting from the collision of new mortgage rules and the forthcoming pension reforms Promote better pathways between the mainstream mortgage market, lifetime mortgages, and downsizing Consider ways of encouraging older households to downsize, promoting more efficient use of the existing housing stock Ensure new housing supply adequately reflects the needs of an ageing population Ensure mortgage regulation works with, rather than against, such policy objectives 8

9 And the in-betweeners How are existing home owners faring? Existing home owners who want to move are numerically more significant than other groups and important to understanding the wider housing market. Average home mover loan to value Average home mover deposit Transacting in the housing market is about fulfilling aspirations, so confidence is an important, if unquantifiable, factor. Within the general picture of a severe contraction in the number of transactions and the beginning of a recovery, the experience has been quite different for different types of buyers. The number of loans taken out by people moving home declined by almost half from over 560,000 in 2007 to 315,000 in However, unlike some other groups of buyers, the recovery in the number of home movers has been much slower. Last year movers took out only 337,000 mortgages, compared to an average of more than 700,000 a year in the decade preceding the market downturn. People who want to move in response to changing family and employment circumstances have been restricted by affordability constraints, restricted access to mortgages, transaction costs, economic conditions and a lack of confidence in taking on new borrowing commitments, as well as the cost of housing and the shortage of supply. Buyers in this group often rely on the growth of equity in their existing home to finance their next purchase. The combination of only modest earnings growth over the past few years and the erosion of housing equity have made it difficult for many in this group to bridge the gap on a scale sufficiently large enough for them to make the next step up in the property market. The problem of insufficient savings is also by no means limited to first-time buyers. Since the introduction of new mortgage rules in April, existing borrowers wishing to take out a new mortgage will see a noticeable difference in the length of time and level of detail now required by lenders in assessing mortgage applications. The increased level of affordability requirements may result in borrowers becoming mortgage prisoners and may prevent them switching to better deals to protect against rate rises. However, lenders can move these customers on to a mortgage that better suits their needs, as long as they do not increase their borrowing. 72% 58,700 Average home mover mortgage loan Average age of a home mover 151, years old 9

10 With the prospect of higher interest rates on the horizon, borrowers will at some stage need to adjust to higher costs. Despite pressure on household finances, research shows that most borrowers prioritise their mortgage commitments and are willing to cut back on other spending where possible. This has helped mortgage arrears and repossessions to continue to decline despite a lengthy period of falling real incomes. At some stage a return to more normal interest rates will mean that an increasing number of home owners may experience mortgage repayment difficulties. Lenders will respond sympathetically and try to help their borrowers get back on track. Repossession will always be a last resort. But the government also needs to work with industry to develop an additional safety net, perhaps combining private insurance and state support in a more joined-up way than under current arrangements % Aged under 25 & 75% Aged = BUY Buy without assistance We want the next government to: Reduce affordability barriers to transacting by reforming stamp duty Watch for any unintended consequences of regulation on creditworthy mortgage holders Work with the industry to develop a more effective safety net against the risks of changes in household circumstances Ensure that policies affecting all tenures are holistic and recognise private sector market realities % Aged under 25 & 27% Aged = BUY Buy without assistance 10

11 Private and social rented sectors Given the challenges around access to home ownership, the private rented sector has become increasingly diverse as it has grown. Although traditionally associated with more mobile sectors of the population, it now caters to a range of households on a longer term basis. The typical terms and conditions of buy-to-let mortgages permit landlords to offer assured shorthold tenancies of between six and 12 months. However, this is beginning to change to cater for tenancies of up to three years. The lending industry acknowledges the aspirations for longer-term tenancies and will continue to work with landlords, tenants and policy makers in determining how they could be made more widely available. But it should not be assumed that these will instantly become the norm: for many groups of private tenants, the shorter and more flexible terms associated with existing six and twelve month tenancies are likely to remain the preferred option. The renaissance of the private rented sector over the past 15 years now means that households have much greater choice over the timing of house purchase decisions. Each year, there are significant numbers of household movements in both directions between home ownership and the private rented sector. Even when home owners need to move, for say job-related or family-related reasons, they may be able to defer a sale or switch to renting instead. So flexibility to move between tenures as people s circumstances change is critical to a well functioning housing market. We expect to see a growing interest from institutional investors in developing particular types of rented accommodation. In the private rented sector became the second largest tenure in England 18% private rented sector 17% social rented sector And we should not forget that the social housing sector plays an equally important role within the housing arena for those for whom home ownership or private renting is not an option. Mortgage lenders have lent 60 billion to housing associations for new build, repair and improvement to social housing. This has enabled significant improvements in the condition of existing homes and communities as well as delivering new affordable homes without increasing the use of public money. However, welfare reform has the potential to impact negatively on future investment. In particular, the payment of housing benefit direct to tenants creates uncertainty for landlords that they will receive their rent. Pilot schemes have shown a rise in arrears, and this will have a detrimental impact on lenders and investors appetite to fund the sector in the future. This is at a time when public funding has been cut and aspirations for new supply have been pinned on the availability of private finance going forward. Source: DCLG 11

12 Final thoughts We want the next government to: Recognise that the UK housing market is really a whole set of local markets, but that most finance is provided by national lenders who need standard operating frameworks Ensure the practicalities of regulation are in line with government policy and support the longterm health of the economy Ensure that neither localism nor European regulation hinder rather than help the effective delivery of housing and housing finance Prioritise and promote the supply of the right types of housing in the right locations this is the long-term solution to housing affordability! 12

13 About the CML We represent mortgage lenders and promote sustainable housing finance. The issues that we cover include: We represent lenders of all sizes and types who together undertake 95% of residential mortgage business in the UK. Our members include banks, building societies and other mortgage lenders, and firms that administer mortgages. CML membership Full member Associate Third party administrator Group associate Parent member Affordable housing Arrears and repossessions Buy to let Conduct regulation Conveyancing Devolved administrations Environmental issues Equity release Europe Fraud and financial crime Housing market and supply Market analysis and data Mortgage lending practices New build Prudential regulation Political affairs/activity Source: CML 13

14 Council of Mortgage Lenders North West Wing Bush House Aldwych London WC2B 4PJ Tel: Follow us on

Briefing Paper on Equity Release

Briefing Paper on Equity Release COUNCIL of MORTGAGE LENDERS Briefing Paper on Equity Release What is equity release? 1. Equity is the difference between any mortgage you may have and the value of your home. Equity release is a way of

More information

Help to Buy: mortgage guarantee. scheme outline

Help to Buy: mortgage guarantee. scheme outline Help to Buy: mortgage guarantee scheme outline March 2013 Help to Buy: mortgage guarantee scheme outline March 2013 Crown copyright 2013 You may re-use this information (not including logos) free of charge

More information

Securing the future availability and affordability of home insurance in areas of flood risk

Securing the future availability and affordability of home insurance in areas of flood risk Securing the future availability and affordability of home insurance in areas of flood risk Introduction Response by the Council of Mortgage Lenders to the Invitation to comment on draft flood insurance

More information

Policy Response Buy to Let Tax Relief

Policy Response Buy to Let Tax Relief Savills World Research Policy Response Buy to Let Tax Relief Autumn 215 savills.co.uk/research In his May budget the Chancellor announced a limit on mortgage interest relief for buy to let investors in

More information

SHARED OWNERSHIP LEASES. What is shared ownership leasehold and how does it work?

SHARED OWNERSHIP LEASES. What is shared ownership leasehold and how does it work? SHARED OWNERSHIP LEASES What is shared ownership leasehold and how does it work? Contents Purpose of this leaflet... 3 What is leasehold... 3 What is a shared ownership lease... 3 What are the differences

More information

Spotlight Bridging the Gap in Housing November 2013

Spotlight Bridging the Gap in Housing November 2013 Savills World Research UK Residential Spotlight Bridging the Gap in Housing November 2013 SUMMARY Over two million households excluded from the property market by the credit crunch Excluded households:

More information

IMAGE. Buy to Let Guide. What to consider before turning your pension into a buy-to-let investment

IMAGE. Buy to Let Guide. What to consider before turning your pension into a buy-to-let investment IMAGE Buy to Let Guide What to consider before turning your pension into a buy-to-let investment Withdrawing money from pension pots to fund a buy-to-let investment could potentially become a more popular

More information

Your step by step buy-to-let guide

Your step by step buy-to-let guide Your step by step buy-to-let guide by The Frost Partnership First time buy-to-let? Need help choosing a property? Financing your property Legal advice Considering the costs Will I make any money? Choosing

More information

Crisis response to the review of barriers to institutional investment in private rented homes April 2012

Crisis response to the review of barriers to institutional investment in private rented homes April 2012 Crisis response to the review of barriers to institutional investment in private rented homes April 2012 Introduction Crisis, the national charity for single homeless people, warmly welcomes this review.

More information

Can Equity Release Mechanisms fund long term care costs? Desmond Le Grys

Can Equity Release Mechanisms fund long term care costs? Desmond Le Grys 2001 Health Care Conference Can Equity Release Mechanisms fund long term care costs? Desmond Le Grys 1 Introduction 1.1 Scope This paper attempts to explain why equity release products have rarely been

More information

Making Homes Affordable Labour s Plan for Housing

Making Homes Affordable Labour s Plan for Housing Making Homes Affordable Labour s Plan for Housing Labour Making Homes Affordable.indd 1 10/02/2016 15:47 Every person should have access to good quality, secure, affordable housing, appropriate to their

More information

Mortgages Guide. From http://limetreefs.co.uk 1

Mortgages Guide. From http://limetreefs.co.uk 1 Mortgages Guide Mortgages revealed... The explanations below are intended to give you an insight into some of the more common terms associated with the mortgage process. Repaying the Mortgage Whichever

More information

CML guidance for lenders the role of LPA receivers

CML guidance for lenders the role of LPA receivers CML guidance for lenders the role of LPA receivers Introduction This guidance has been produced for CML members and outlines the basic circumstances and considerations of appointing a Law of Property Act

More information

3 UK housing market outlook: the continuing rise of Generation Rent

3 UK housing market outlook: the continuing rise of Generation Rent 3 UK housing market outlook: the continuing rise of Generation Rent Introduction and summary In this section we review recent trends in the UK housing market and present projections for house price growth

More information

Residential mortgages general information

Residential mortgages general information Residential mortgages general information Residential mortgages general information 2 Contents Who we are and what we do 2 Forms of security 2 Representative Example 2 Indication of possible further costs

More information

This guide is aimed to help you consider the right choices before adding new or further buy to let property to your investment portfolio.

This guide is aimed to help you consider the right choices before adding new or further buy to let property to your investment portfolio. Buy to Let Guide It has now become common for a buy to let property to form part of an individual s investment portfolio. Property has always been easy to understand in that it is tangible and therefore

More information

Buy-to-Let Mortgage Arrears: Measures Needed to Protect Homes of Tenants and Stability of Private Rented Sector

Buy-to-Let Mortgage Arrears: Measures Needed to Protect Homes of Tenants and Stability of Private Rented Sector Buy-to-Let Mortgage Arrears: Measures Needed to Protect Homes of Tenants and Stability of Private Rented Sector Submission to Joint Oireachtas Committee on Finance, Public Expenditure and Reform April

More information

What are the key current issues shaping equity release by older home owners?

What are the key current issues shaping equity release by older home owners? What are the key current issues shaping equity release by older home owners? Round table discussion November 7th 2012 About this project Focus today on equity release but a bigger picture. Initial proposal

More information

Help to Buy Buyers Guide

Help to Buy Buyers Guide Help to Buy Buyers Guide Homes and Communities Agency http://www.homesandcommunities.co.uk/helptobuy Page 1 of 27 Key information Buyers using this scheme must provide security in the form of a second

More information

Home Buying Glossary of terms

Home Buying Glossary of terms Home Buying Glossary of terms GLOSSARY OF AFFORDABLE HOME OWNERSHIP TERMINOLOGY The terms below are often used in house buying or mortgage process. You may come across these terms when you are in the process

More information

Help to Buy Buyers Guide. Homes and Communities Agency http://www.homesandcommunities.co.uk/helptobuy August 2014

Help to Buy Buyers Guide. Homes and Communities Agency http://www.homesandcommunities.co.uk/helptobuy August 2014 Help to Buy Buyers Guide Homes and Communities Agency http://www.homesandcommunities.co.uk/helptobuy August 2014 What is Help to Buy? Help to Buy is equity loan assistance to home buyers from the Homes

More information

THE ARLA REVIEW & INDEX

THE ARLA REVIEW & INDEX THE ARLA REVIEW & INDEX for Residential Investment FOURTH Quarter 2014 Fourth Quarter 2014 Compared with three months ago, the average weighted rental return for houses is up from 5.0% to 5.1%, its second

More information

Have you heard about Open Market HomeBuy?

Have you heard about Open Market HomeBuy? Have you heard about Open Market HomeBuy? A guide to buying a home on the open market using an equity loan Contents What is Open Market HomeBuy? 3 Who is eligible for the scheme? 4 How does Open Market

More information

Bristol Housing Market in 2015 A Summary. In brief: Housing Stock

Bristol Housing Market in 2015 A Summary. In brief: Housing Stock Bristol Housing Market in 2015 A Summary In brief: Demand is up and there continues to be an undersupply of new homes, both for ownership and rent. There is evidence to suggest that, during the last year,

More information

London Mortgages Forum: The Future of Buy to Let?

London Mortgages Forum: The Future of Buy to Let? London Mortgages Forum: The Future of Buy to Let? Charles Haresnape Managing Director, Mortgages & Commercial Lending FOR INTERMEDIARY USE ONLY Aldermore Bank PLC is authorised by the Prudential Regulation

More information

GETTY. Financial Barriers to Home Ownership. In partnership with PROFESSOr steve wilcox,

GETTY. Financial Barriers to Home Ownership. In partnership with PROFESSOr steve wilcox, GETTY Financial Barriers to Home Ownership In partnership with PROFESSOr steve wilcox, THE CENTRE FOR HOUSING POLICY, University of York October 2010 Foreword Angel Mas, president of Mortgage Insurance

More information

Joint or Separate Representation of borrowers and lenders?

Joint or Separate Representation of borrowers and lenders? Joint or Separate Representation of borrowers and lenders? Submission by the Council of Mortgage Lenders to the Law Society of Northern Ireland consultation Introduction 1. The Council of Mortgage Lenders

More information

ARLA Members Survey of the Private Rented Sector

ARLA Members Survey of the Private Rented Sector Prepared for The Association of Residential Letting Agents ARLA Members Survey of the Private Rented Sector Fourth Quarter 2013 Prepared by: O M Carey Jones 5 Henshaw Lane Yeadon Leeds LS19 7RW December,

More information

SUBMISSION TO INQUIRY INTO AFFORDABLE HOUSING. Prepared by National Policy Office

SUBMISSION TO INQUIRY INTO AFFORDABLE HOUSING. Prepared by National Policy Office SUBMISSION TO INQUIRY INTO AFFORDABLE HOUSING Prepared by National Policy Office March 2014 COTA Australia Authorised by: Ian Yates AM Chief Executive iyates@cota.org.au 0418 835 439 Prepared by: Jo Root

More information

recovery How many private renters could get caught up in repossessions as interest rates rise? Pippa Lane

recovery How many private renters could get caught up in repossessions as interest rates rise? Pippa Lane Renting in the recovery How many private renters could get caught up in repossessions as interest rates rise? Pippa Lane Interest rates have been historically low since 2008 and, while there remains considerable

More information

CML interest-only toolkit April 2013

CML interest-only toolkit April 2013 CML interest-only toolkit April 2013 Contents 1. An overview of the options for lenders and borrowers 2. Reactive lender contact strategies 3. Proactive lender contact strategies 4. Spreadsheet matrix

More information

Published on 11 March 2014 at 09:30

Published on 11 March 2014 at 09:30 Press Office Threadneedle Street London EC2R 8AH T 2 761 4411 F 2 761 546 press@bankofengland.co.uk www.bankofengland.co.uk Press Office 25 The North Colonnade Canary Wharf London E14 5HS T 2 766 3232

More information

CORPORATE DEBT POLICY

CORPORATE DEBT POLICY CORPORATE DEBT POLICY Reference: HSL/CDP/JE/06 Approved: 28/03/07 Revised: 1 Statement of Intent 1.1 The intention of the corporate debt policy is to set a clear over-arching statement on how the Housing

More information

equity loans explained State money, interest-free for five years

equity loans explained State money, interest-free for five years help TO buy Your guide to the latest government-backed scheme Produced by In association with equity loans explained State money, interest-free for five years easy access How to apply INTROducTION The

More information

An offer to extend Right to Buy discounts to housing association tenants

An offer to extend Right to Buy discounts to housing association tenants An offer to extend Right to Buy discounts to housing association tenants This document sets out the terms of an offer the National Housing Federation has made to the Government for a potential agreement

More information

Retirement Policy & Research Centre Symposium Spending the Savings: Decumulation & Middle-income Retirement 30 Nov 2012

Retirement Policy & Research Centre Symposium Spending the Savings: Decumulation & Middle-income Retirement 30 Nov 2012 Retirement Policy & Research Centre Symposium Spending the Savings: Decumulation & Middle-income Retirement 30 Nov 2012 The Future of Home Equity Release Products The Role of Property as a Decumulation

More information

G e t S t a r t e d o n Y o u r f i n a n c e s

G e t S t a r t e d o n Y o u r f i n a n c e s M o r t g a g e N e w s l e t t e r W e l c o m e To this newsletter, which covers some of the key issues of the moment that affect mortgages and mortgage related products, and sets out how it may help

More information

Housing and and Community Services Department

Housing and and Community Services Department Contact: Nadja Stone Tel: 020 8583 3761 E-Mail: Nadja.Stone@hounslow.gov.uk Housing and and Community Services Department AFFORDABLE HOUSING PANEL - 1 February 2007 Home Ownership Initiatives - Cash Incentive

More information

largeequityrelease.com EQUITY RELEASE GUIDE Speak to one of our specialists today on 020 3824 0904

largeequityrelease.com EQUITY RELEASE GUIDE Speak to one of our specialists today on 020 3824 0904 largeequityrelease.com EQUITY RELEASE GUIDE Speak to one of our specialists today on 020 3824 0904 CONTENTS What is equity release?... 3 How much money could I raise through an equity release?... 4 What

More information

By Alister Steele September 2012

By Alister Steele September 2012 A New Role for Housing Associations By Alister Steele September 2012 Introduction Housing association s core role is providing housing for those in greatest need underpinned by traditionally high levels

More information

Easy Home Purchase Scheme

Easy Home Purchase Scheme Easy Home Purchase Scheme Information for tenants What is the Easy Home Purchase Scheme (EHPS)? The EHPS is only available to Lewisham Social Housing Tenants who wish to buy a home in the private sector.

More information

The Help to Buy equity loan scheme

The Help to Buy equity loan scheme Report by the Comptroller and Auditor General Department for Communities and Local Government The Help to Buy equity loan scheme HC 1099 SESSION 2013-14 6 MARCH 2014 4 Key facts The Help to Buy equity

More information

Information Paper 10. Debt Management

Information Paper 10. Debt Management Information Paper 10 Debt Management February 2007 Introduction Local Government financial statements, like those of other spheres of government and the corporate sector, include a good many items of considerable

More information

Arbon House, 6 Tournament Court, Edgehill Drive, Warwick CV34 6LG T. 0845 250 6001 F. 0845 250 6069 E.info@arla.co.uk www.arla.co.

Arbon House, 6 Tournament Court, Edgehill Drive, Warwick CV34 6LG T. 0845 250 6001 F. 0845 250 6069 E.info@arla.co.uk www.arla.co. Written views for the London Assembly Housing Committee investigation into the impact that rent stabilisation measures would have on London s housing market from the Association of Residential Letting

More information

MORTGAGES4REAL LIMITED

MORTGAGES4REAL LIMITED WELCOME TO MIKE ROGERSON.CO.UK ESTATE AGENTS SURVEYORS LETTINGS MANGEMENT MIKE ROGERSON MORTGAGES4REAL LIMITED We know that taking out a mortgage will probably be the biggest financial commitment you can

More information

Giving up homeownership: a qualitative study of voluntary possession and selling because of financial difficulties

Giving up homeownership: a qualitative study of voluntary possession and selling because of financial difficulties Housing Research Summary Giving up homeownership: a qualitative study of voluntary possession and selling because of financial difficulties Number 244 August 2010 Borrowers who cannot pay their mortgages

More information

Let s work together. Intermediary product guide.

Let s work together. Intermediary product guide. Let s work together Intermediary product guide. Launched in 2009, Aldermore champions Britain s businesses. We offer straightforward banking products and services to small and medium-sized businesses and

More information

European Union Green Paper on Mortgage Credit in the EU. Response from Prudential plc

European Union Green Paper on Mortgage Credit in the EU. Response from Prudential plc 1 General Comments European Union Green Paper on Mortgage Credit in the EU Response from Prudential plc 1.1 We welcome the opportunity to respond to the Commission s Green Paper on Mortgage Credit in the

More information

First Home Buyers: The Big Picture

First Home Buyers: The Big Picture First Home Buyers: The Big Picture April 2014 Key Points: There has been considerable coverage of late regarding the First Home Buyer (FHB) market share, with the widespread perception that this group

More information

Consultation Paper CP11/16 Underwriting standards for buy-tolet mortgage contracts

Consultation Paper CP11/16 Underwriting standards for buy-tolet mortgage contracts Consultation Paper CP11/16 Underwriting standards for buy-tolet mortgage contracts March 2016 Prudential Regulation Authority 20 Moorgate London EC2R 6DA Prudential Regulation Authority, registered office:

More information

and Residents Consultative Forum

and Residents Consultative Forum REPORT FOR: Tenants, Leaseholders and Residents Consultative Forum Date of Meeting: 27 February 2013 Subject: Key Decision: Cash incentive schemes for Council tenants No Responsible Officer: Lynne Pennington

More information

Rental Britain as an Asset Class

Rental Britain as an Asset Class Rental Britain as an Asset Class Savills Development Services Seminar Series Chair: James Coghill, Head of Residential Capital Markets, Savills Thursday 6 September 2012 savills.co.uk Welcome Savills Residential

More information

Chapter 3: Property Wealth, Wealth in Great Britain 2010-12

Chapter 3: Property Wealth, Wealth in Great Britain 2010-12 Chapter 3: Property Wealth, Wealth in Great Britain 2010-12 Coverage: GB Date: 15 May 2014 Geographical Area: GB Theme: Economy Key Points Aggregate net property wealth for all private households in Great

More information

Recent trends in the UK first-time buyer mortgage market

Recent trends in the UK first-time buyer mortgage market Recent trends in the UK first-time buyer mortgage market Dmitry Kuvshinov 1 Summary First-time buyers (FTBs) represent an important component of the mortgage lending market in the UK, accounting for almost

More information

THE BANK OF MUM AND DAD

THE BANK OF MUM AND DAD THE BANK OF MUM AND DAD THE BANK OF MUM AND DAD 2 THE BANK OF MUM AND DAD THE BANK OF MUM AND DAD 3 EXECUTIVE SUMMARY. Low or no interest rates, long or infinite repayment periods and a personal service:

More information

Executive Summary Aspiration Age

Executive Summary Aspiration Age Executive Summary Aspiration Age Delivering capital solutions to promote greater choice and independence for older people part of One Housing Group 2 Executive Summary Aspiration Age Executive Summary

More information

Northern Rock plc: Half Year Results 2011

Northern Rock plc: Half Year Results 2011 Press Release 3 August 2011 Northern Rock plc: Half Year Results 2011 Northern Rock has continued to build momentum during the first half of the year and considerably improved its position over 2010 The

More information

A Guide to Equity Release in Retirement

A Guide to Equity Release in Retirement A Guide to Equity Release in Retirement 1. Introduction For the retirement you deserve 2. What is Equity Release? 3. Equity Release Plans The options available to you 4. The Application Process 5. Questions

More information

Buy-to-Let Investor Guide

Buy-to-Let Investor Guide Buy-to-Let Investor Guide residential letting www.linleyandsimpson.co.uk Buy-to-let is a British phrase referring to the purchase of a property specifically to let out. A Buy-to-Let mortgage is a mortgage

More information

Buy-to-let mortgage lending and the impact on UK house prices: a technical report

Buy-to-let mortgage lending and the impact on UK house prices: a technical report Buy-to-let mortgage lending and the impact on UK house prices: a technical report Buy-to-let mortgage lending and the impact on UK house prices: a technical report Ricky Taylor National Housing and Planning

More information

Our Home Reversion Plan. Enjoy your retirement by unlocking the value of your home

Our Home Reversion Plan. Enjoy your retirement by unlocking the value of your home Our Home Reversion Plan Enjoy your retirement by unlocking the value of your home I can now have the garden I ve always wanted. 1 Bridgewater Equity Release Limited the Home Reversion Plan experts Bridgewater

More information

Association of Mortgage Intermediaries response to FCA DP16/1 on the ageing population and financial services

Association of Mortgage Intermediaries response to FCA DP16/1 on the ageing population and financial services Association of Mortgage Intermediaries response to FCA DP16/1 on the ageing population and financial services This response is submitted on behalf of the Association of Mortgage Intermediaries (AMI). AMI

More information

Reforms to the Real Estate Investment Trust regime: comments on the consultation document released on 4 April 2012

Reforms to the Real Estate Investment Trust regime: comments on the consultation document released on 4 April 2012 Reforms to the Real Estate Investment Trust regime: comments on the consultation document released on 4 April 2012 Grant Thornton UK LLP (Grant Thornton) has considered the questions raised in the consultation

More information

Section 1: Our assessment of the importance of housing for wellbeing in Scotland

Section 1: Our assessment of the importance of housing for wellbeing in Scotland Commission on Housing and Wellbeing Consultation 2014 North Lanarkshire Council Response Section 1: Our assessment of the importance of housing for wellbeing in Scotland Q1 Has our assessment of housing

More information

The Money Statistics January 2015

The Money Statistics January 2015 The Money Statistics January 2015 Welcome to the January 2015 edition of The Money Statistics The Money Charity s monthly roundup of statistics about how we use money in the UK. These were previously published

More information

RELEASING CASH FROM YOUR HOME

RELEASING CASH FROM YOUR HOME RELEASING CASH FROM YOUR HOME As a recommended adviser for the Society of Later Life Advisers (SOLLA) we are frequently asked to advise on home income/equity release plans. These notes are designed to

More information

A guide to mortgages

A guide to mortgages A guide to mortgages Contents An Introduction to mortgages 3 What is a mortgage? 4 Choosing a mortgage - where to start 5 What to consider before getting a mortgage? 6 Mortgage and repayment types 8 Interest

More information

Protecting clients' financial interests. Response by the Council of Mortgage Lenders to the Solicitors Regulation Authority discussion paper

Protecting clients' financial interests. Response by the Council of Mortgage Lenders to the Solicitors Regulation Authority discussion paper Protecting clients' financial interests Response by the Council of Mortgage Lenders to the Solicitors Regulation Authority discussion paper Introduction 1. The CML is the representative body for the first

More information

Deduction of income tax from interest: peer-topeer

Deduction of income tax from interest: peer-topeer Deduction of income tax from interest: peer-topeer lending Consultation document Publication date: 15 July 2015 Closing date for comments: 18 September 2015 Subject of this consultation: Scope of this

More information

Rent Arrears Recovery Policy

Rent Arrears Recovery Policy Rent Arrears Recovery Policy 2013-16 July 2013 Version 1.0 Version Control Policy Author Version Number Date Status Comments Finance and Incomes Manager Draft 1.0 24 July 2013 New Approval Body Effective

More information

THE RENTAL EXCHANGE INTRODUCTION. Helping social tenants build a positive credit history to gain equal access to financial services

THE RENTAL EXCHANGE INTRODUCTION. Helping social tenants build a positive credit history to gain equal access to financial services By Social Entrepreneurs For Social Entrepreneurs THE RENTAL EXCHANGE Helping social tenants build a positive credit history to gain equal access to financial services INTRODUCTION THE BIG ISSUE GROUP The

More information

The Money Statistics April 2016

The Money Statistics April 2016 The Money Statistics April 2016 Welcome to the April 2016 edition of The Money Statistics The Money Charity s monthly round-up of statistics about how we use money in the UK. These were previously published

More information

Help to Buy. House Builder and Developer Participation Guidance. July 2014. Page 1 of 15

Help to Buy. House Builder and Developer Participation Guidance. July 2014. Page 1 of 15 Help to Buy House Builder and Developer Participation Guidance July 2014 Page 1 of 15 Contents Ministerial Foreword page 3 Introduction... page 4 Help to Buy overview... page 5 Help to Buy registration...

More information

Your home. all together better

Your home. all together better Your home all together better The National Adult Literacy Agency (NALA) has approved the clarity of this brochure. The EBS mutual difference EBS Building Society was founded in 1935 by a small group of

More information

Policy Response The impact of new housing measures on development

Policy Response The impact of new housing measures on development Savills World Research UK Residential Policy Response The impact of new housing measures on development February 2016 SUMMARY Markets served by Help to Buy, Starter Homes and shared ownership are likely

More information

Reshaping housing tenure in the UK: the role of buy-to-let. Rob Thomas, Director of Research

Reshaping housing tenure in the UK: the role of buy-to-let. Rob Thomas, Director of Research Reshaping housing tenure in the UK: the role of buy-to-let Rob Thomas, Director of Research May 2014 1 Key findings: Higher demand has been the main driver of growth in the private rented sector over the

More information

Commercial Property Investment Guide. Your guide to purchasing and managing a commercial investment property

Commercial Property Investment Guide. Your guide to purchasing and managing a commercial investment property Commercial Property Investment Guide Your guide to purchasing and managing a commercial investment property Contents Introduction 1 The benefits of commercial property investment 2 Why invest in property?

More information

Application form Residential Mortgage

Application form Residential Mortgage Application form Residential Mortgage Intermediary details This section requires details of any Broker, Packager, Sub broker, or Network who has an interest in this application. THIS PAGE MUST BE COMPLETED

More information

Social Housing in NSW

Social Housing in NSW Social Housing in NSW Submission February 2015 AGED & COMMUNITY SERVICES NSW & ACT PO Box 3124 Rhodes NSW 2138 (02) 8754 0400 mail@acs.asn.au www.acs.asn.au ABN 13 737 853 254 ACN 124 322 916 ABOUT ACS

More information

what to consider before deciding on a particular scheme

what to consider before deciding on a particular scheme Factsheet 65 May 2014 About this factsheet This factsheet provides information about different types of equity release schemes such as lifetime mortgages and home reversion schemes. It includes information

More information

09 February 2012. Housing Strategy Team Welsh Government Rhydycar Business Park Merthyr Tydfil, CF48 1UZ. Dear Sir/Madam

09 February 2012. Housing Strategy Team Welsh Government Rhydycar Business Park Merthyr Tydfil, CF48 1UZ. Dear Sir/Madam 09 February 2012 Housing Strategy Team Welsh Government Rhydycar Business Park Merthyr Tydfil, CF48 1UZ Dear Sir/Madam Re: Older people s housing and a new Housing Bill for Wales Thank you for the opportunity

More information

Glossary of Mortgage Terms. Also known as: Mortgage Payment Protection Insurance (MPPI).

Glossary of Mortgage Terms. Also known as: Mortgage Payment Protection Insurance (MPPI). Glossary of Mortgage Terms Italics denote a cross-referenced entry Accident, Sickness and Unemployment Insurance (ASU): In the event of an accident, sickness or involuntary unemployment befalling a borrower,

More information

Your guide to Help to Buy www.helptobuyese.org.uk

Your guide to Help to Buy www.helptobuyese.org.uk Help to Buy East and South East Your guide to Help to Buy Apply online at What is Help to Buy? If you want to purchase a home of your own, but can t afford to buy on the open market. Help to Buy could

More information

Development of consumer credit in China

Development of consumer credit in China Development of consumer credit in China Shen Bingxi and Yan Lijuan 1 Summary Consumer credit particularly personal consumer loans such as home mortgages and loans financing purchases of automobiles and

More information

Open Banking Building a transparent banking system

Open Banking Building a transparent banking system Open Banking Building a transparent banking system Housing Open Banking : Building a transparent banking system Labour s With Britain back in recession thanks to the Government s failed economic policies

More information

For many Australians, their main form of savings over their lifetime is their home. Directing savings towards a home provides two benefits:-

For many Australians, their main form of savings over their lifetime is their home. Directing savings towards a home provides two benefits:- 1. Executive Summary For many Australians, their main form of savings over their lifetime is their home. Directing savings towards a home provides two benefits:- Ø A place to live, with security of tenure.

More information

Hart s Older Persons Housing Strategy 2011-14

Hart s Older Persons Housing Strategy 2011-14 Hart s Older Persons Housing Strategy 2011-14 Helping local people find housing solutions Final Version Date: May 2011 Contents Introduction 3 Objective 1: Deliver a choice of good quality housing for

More information

Developments in the Equity Release Market

Developments in the Equity Release Market Developments in the Equity Release Market Brian Morrissey, KPMG 2003 Life Convention 9-11 November Hilton Birmingham Metropole Hotel Agenda Equity Release products in UK Regulation Risks Funding Financial

More information

Your guide to Help to Buy

Your guide to Help to Buy Your guide to Help to Buy Help to Buy Agent for the East and South East What is Help to Buy? If you want to purchase a home of your own, but can t afford to buy on the open market. Help to Buy could be

More information

RELEASING CASH FROM YOUR HOME

RELEASING CASH FROM YOUR HOME RELEASING CASH FROM YOUR HOME As a recommended SOLLA adviser we are frequently asked to advise on home income/equity release plans. These notes are designed to provide some general background to clients

More information

Your guide to YourChoice Open Market Home Purchase Equity Loan Scheme. Making your aspiration of homeownership a reality

Your guide to YourChoice Open Market Home Purchase Equity Loan Scheme. Making your aspiration of homeownership a reality Your guide to YourChoice Open Market Home Purchase Equity Loan Scheme Making your aspiration of homeownership a reality For eligible people living or working in the South Bucks District Council area Delivered

More information

What we do. A guide to our services

What we do. A guide to our services What we do A guide to our services Retirement solutions since 1965 Hodge Lifetime has been a specialist in the retirement market for 50 years. Hodge Lifetime has been a specialist in the retirement market

More information

Section 2. Commentary. Chapter 6 Help with housing costs

Section 2. Commentary. Chapter 6 Help with housing costs Section 2 Commentary Chapter 6 Help with housing costs Commentary 76 Modest taxes on housing wealth No changes were made to the tax position for homeowners in the 06 Budget, and there was little change

More information

Fannie Mae National Housing Survey. What Younger Renters Want and the Financial Constraints They See

Fannie Mae National Housing Survey. What Younger Renters Want and the Financial Constraints They See Fannie Mae National Housing Survey What Younger Renters Want and the Financial Constraints They See Copyright 2014 by Fannie Mae May 2014 Table of Contents Research Methodology... 4 Executive Summary.....

More information

A HOME OF YOUR OWN. A Guide to Low Cost Housing in Hounslow for People on Moderate Incomes and for Key Workers

A HOME OF YOUR OWN. A Guide to Low Cost Housing in Hounslow for People on Moderate Incomes and for Key Workers A HOME OF YOUR OWN A Guide to Low Cost Housing in Hounslow for People on Moderate Incomes and for Key Workers WHAT IS LOW COST HOUSING? Low Cost Housing is a general term for a number of schemes aimed

More information

Guidance. For use in the United Kingdom. Letter regarding mortgage debt or arrears

Guidance. For use in the United Kingdom. Letter regarding mortgage debt or arrears Guidance For use in the United Kingdom Letter regarding mortgage debt or arrears Contents Purpose of this document What can you do about mortgage arrears? Mortgage rescue schemes Selling your property

More information

Care and Support Funding Reform Cost implications for London

Care and Support Funding Reform Cost implications for London Care and Support Funding Reform Cost implications for London Key findings The government has announced that from April 2016 a cap will be introduced limiting the amount of money people will have to pay

More information

businessmortgagesolutions

businessmortgagesolutions businessmortgagesolutions Tel: 01834 849797 email: info@business-mortgage.com All you need to know about funding your freehold business purchase Introduction Backed by over 20 years experience in arranging

More information

Bridging Finance. Buy-to-let. at Record High

Bridging Finance. Buy-to-let. at Record High Buy-to-let landlords make use of 64 million in short-term secured loans over last 12 months Total gross bridging lending for all purposes reaches 1.79 billion in year to August 213 In July and August,

More information

Mortgages. Becoming a Landlord. Things to consider before becoming a Buy to Let Landlord. Local knowledge. Mutual understanding.

Mortgages. Becoming a Landlord. Things to consider before becoming a Buy to Let Landlord. Local knowledge. Mutual understanding. BTL Guide:Layout 1 21/09/2015 16:32 Page 1 Mortgages Becoming a Landlord Things to consider before becoming a Buy to Let Landlord. Local knowledge. Mutual understanding. Finding a property If you are looking

More information