Friday, 9 April 2021

5 Things That Could be Making Your House in Warrington Harder to Sell!

 

If you’re looking to sell your house in Warrington, the chances are you’ll want to do it pretty swiftly, especially if you’ve already got one eye on your next property.

Selling up can be a lengthy process at the best of times, so you don’t want to give buyers any extra reasons to delay the purchase.

Unfortunately, without realising it, you may be making your property harder to sell. So, with this in mind, here are five things that make your house harder to sell, along with the solutions so that you can sell your house faster!

The Problem: Too Much Clutter
There’s a fine line between a house that’s ‘lived in’ and loved and one that’s a complete mess! While potential buyers are unlikely to be put off by a few magazines on the coffee table, having a living room that’s sprawling with toys and games all over the floor or an understairs cupboard stuffed to the brim won’t give potential buyers a good first impression.

The Solution:
To avoid this issue, use your house move as an opportunity to declutter. You can list some items on an online auction site such as eBay to make some extra cash and use it to furnish your new home, or simply donate some of your old belongings to a local charity shop.

And if you decide that you can’t let any of your belongings go, then just make sure the house is tidy and well-presented before any viewings. Put away anything that’s making the house look untidy, either in storage or neatly in a garage, shed or cupboard.

Lastly, although it’s a good idea to declutter, don’t fall into the trap of removing all your personal items. Viewers will want to imagine themselves living in the property, so seeing a few family pictures and keepsakes around the house is more likely to leave a positive impression than a completely generic house with no personality.

The Problem: Poor Maintenance
It’s easy to put off odd jobs until they become absolute priorities, like replacing a missing lightbulb, fixing a broken fence, or getting the boiler serviced annually.

However, when it comes to selling your property, these are all things that potential buyers will notice and ask questions about. Therefore, it’s worth spending just a little bit of time and money to bring everything up to scratch.

The majority of buyers are looking for a home they can move into straight away, without having to make major changes immediately, such as getting a new boiler or having a new fence installed.

The Solution:

Before your estate agent books any viewings, make sure that everything is ship-shape and in good working order. Get your boiler serviced, check your taps, showers and central heating. Give your garden the once over and don’t forget to clear debris from gutters.

The Problem: Bad Odours
Most homes have a certain smell to them and in most cases it’s very unlikely to put visitors off, however if you’re a heavy smoker, cook pungent foods or have pets that cause a strong smell in your house, then this can be off-putting.

The Solution:
The simplest solution to this problem is to make sure the house is clean and well aired before any viewings.

Make sure you’ve cleared up any pet droppings and leave windows open to allow fresh air in. A scented candle lit for half an hour before viewings will also help to remove any strong odours.

The Problem: It’s overpriced
It’s perfectly understandable that you want to achieve the highest possible price for your house, but it’s important to be realistic too.

A good estate agent will be able to give you the price range that you should be looking for, but bear in mind if your house isn’t selling, you may need to accept an offer closer to the lower end of that range than the top.

The Solution:
In order to get the full asking price or as close to it as possible, make sure your house is well maintained and everything is in good working order.

A faulty boiler or peeling paint on the walls can unwittingly encourage buyers to put in a much lower offer than you’re looking for, so getting a few small jobs done, such as an annual boiler service and giving the walls a fresh lick of paint could make a big difference when it comes to getting your asking price.

You should be prepared to be flexible on the asking price, particularly if you’re looking for a quick sale, and be realistic about how much you’re willing to accept.

The Problem: Poor ‘kerb appeal’
Kerb appeal is essentially the first thing a potential buyer sees when they look at your property from the outside, so as with everything in this list, first impressions count.

If you’ve got an overgrown front garden and dirty wheelie bins permanently on display, it could deter some buyers before they even set foot inside.

The Solution:
As a bare minimum, make sure your wheelie bins are clean and tucked away, any weeds have been dug up, and grass has been cut.

And you can even go a step further, by adding some hanging baskets or pot plants. Be creative.

For no obligation advice on buying or selling your home in Warrington please contact our expert property team at Hamlet Homes Warrington on 01925 235 338. We look forward to assisting you.

If you are looking for an agent that is well established, professional and communicative, whether you’re buying, selling or looking for an investment opportunity, then contact us to find out how we can get the best out of the Warrington property market.

Email me on manoj@hamletwarrington.co.uk or call on 01925 235 338 – we are based on the Warrington Business Park, Long Lane, WA2 8TX. There is plenty of free parking and the kettle is always on.

Don't forget to visit the links below to view back dated deals and Warrington Property News.

CLICK HERE TO FIND OUT HOW MUCH YOUR WARRINGTON HOME IS WORTH FOR FREE
Hamlet Homes Warrington, your local Estate Agent
Follow my Warrington Property Market Blog
Hamlet Homes Warrington LinkedIn Page
Hamlet Homes Estate Agents Warrington Facebook Page
Hamlet Homes Estate Agents Warrington Twitter Page

Tuesday, 6 April 2021

Warrington Property Market: 2011-2021


A look back at the Warrington housing market over the last decade

With all of us completing the Census, a couple of weeks ago, it made me realise profoundly that mine and my family’s life, which from our own point of view seems unique and delightful, makes us all into a series of statistics for the Census gatherers to pore over. To digest and regurgitate facts, figures and trends for those who are interested in the ever- changing social circumstances of these islands.

However, the information from the Census is vital to improving our lives - Governments can plan the future with the information it provides and we in turn can wonder about the lives of our past generations with the information provided therein historically if we so wish.

Whilst the information from this Census won’t be published until March 2023, let us have a look at what has been happening in the Warrington property market since the last time we completed the Census in 2011.

Just to remind you, 2011 saw the wedding of Prince William and Kate Middleton, Mr Cameron was the PM, there was the last flight of the Space Shuttle and Game of Thrones premiered.

Whilst in the Warrington property market …

· The average price paid for a Warrington detached home in the last 12 months has been £343,600. The average value of a Warrington detached home has risen by 27.5% in the last 10 years or £68,400

· The average price paid for a Warrington semi-detached home in the last 12 months has been £198,600. The average value of a Warrington semi-detached home has risen by 38.6% in the last 10 years or £55,700

· The average price paid for a Warrington town house/terraced home in the last 12 months has been £149,700. The average value of a Warrington town house/terraced home has risen by 27.5% in the last 10 years or £36,800

· The average price paid for a Warrington apartment/flat in the last 12 months has been £107,400. The average value of a Warrington apartment/flat has risen by 36.8% in the last 10 years or £34,900

New properties built in Warrington…

Irrespective of any dip in Warrington house prices or transactions when the Stamp Duty Holiday ends in the autumn, this is a trend that looks set to continue, with no sign that supply of new homes is anywhere near to keeping pace with demand for households.

There have only been 3,446 new properties built in Warrington in the last 10 years, that’s less than 29 a month. That means the population in Warrington has risen by 1.72 people for every new home built over that decade.

Nationally, the Country has only built just over 180k homes a year over the last decade, 120k less than the national target of 300k. In the meantime, the population has grown by more than 4 million.

When looking locally at the size of new build property in Warrington, the average property is around 850 sq. ft., which is 13% larger than a decade ago.

Rents in Warrington …

Whether you are a winner or loser in terms of rental values depends on whether you are a Warrington landlord or a Warrington tenant.

The average rent for a property in Warrington currently stands at £600 per month, whilst a decade ago, it was £545 per month

This means private rents have increased by 45p a month for the past ten years. Interesting, when compared to the national average of 98p a month whilst in London, rents have grown by £4.64 a month.

The next 10 years of the Warrington Property Market…

The next ten years will also be just as fascinating. To try and predict would be a fool’s game.

For example, who would have believed what the Warrington property market has done in the last 12 months since the start of Lockdown 1.0. The number of transactions (i.e. people moving) in turn with UK house prices having risen so much in the last year ... all during a worldwide pandemic and at a time of such mayhem and havoc in the UK and world economy, is nothing short of remarkable … the question is – is it sustainable?

Read these articles in the coming months and years and I will share with you what is happening to the value of your Warrington property, be you a Warrington homeowner or Warrington landlord.


Don't forget to visit the links below to view back dated deals and Warrington Property News.
CLICK HERE TO FIND OUT HOW MUCH YOUR WARRINGTON HOME IS WORTH FOR FREE
Hamlet Homes Warrington, your local Estate Agent
Follow my Warrington Property Market Blog
Hamlet Homes Warrington LinkedIn Page
Hamlet Homes Estate Agents Warrington Facebook Page
Hamlet Homes Estate Agents Warrington Twitter Page


Thursday, 1 April 2021

7 Easy Ways to Save a Deposit For Your First Home in Warrington

   

Lots of people dream of no longer living with their parents or throwing money at their landlord every month and instead buying their own home in Warrington. However, one of the things that often stands in the way of first time buyers is raising a deposit. The average house price in the UK is just over £234k, and nearly all mortgages require a 5% deposit, so that’s a large amount to save.

With this in mind, here are some ways you can raise the cash to get on the property ladder.

1. Look carefully at your outgoings

While you may think you’re living quite frugally, most people have some areas where they can cut back a little. For example, if you buy a £2.75 takeaway coffee every working day, that works out at £55 a month or a whopping £3,300 over five years. Even chipping away at these small expenses can improve your finances, and when it comes to applying for a mortgage, you can show that you have a pattern of sensible spending.

One big outgoing that non-homeowners have to deal with is rent. While it’s not the most fun solution, if you can move back with your parents for a year, then you could put away a lot more cash. The loss of freedom may be worth it if it means you aren’t stuck in rented accommodation for years to come.

2. Get a side hustle

Many millennials now have a full-time job and a side hustle, which is basically something they do in their spare time for a little extra cash. Side hustles are often something that’s creative or a little more interesting than your day-to-day job, from selling handmade items on sales platforms like Etsy to creative writing, but if you don’t have a particular skill in these areas, then you could always consider selling things on eBay, evening bar work, or anything that fits in with your work schedule.

3. Ask for family help

Around 23% of first-time buyers admit that they got help from their parents for their deposit. If you parents have the savings and are willing to give you money towards your deposit, then you will no doubt be pleased to take it. However, you need to consider the impact on your mortgage application. Mortgage lenders will still want to know that you can afford the mortgage repayments and will need a signed declaration from your parents that the money is a gift, and you aren’t going to be paying them back.

If your parents don’t have the savings to help you with cash, they may still be able to give you a helping hand onto the property ladder. For example, some banks do offer 100% mortgages that are secured against your parent’s home. However, it’s important that you all do your research before you take out this sort of product as it is a huge commitment.

4. Take money out of your account at payday

Many people wait until the end of the month, see what’s left over in their account (if anything), then transfer that into their savings account. However, a better way to save is to work out what you need to live on for the month, with a little cushion for emergencies, then set up a payment for anything left over on payday. This means you’re more likely to live frugally throughout the month.

5. Move to a cheaper area

If rent, travel and other outgoings are wiping out your income each month, a solution may be to move to a cheaper area whilst you save for your deposit. You certainly wouldn’t be alone, last year over 300,000 people moved out of London, many of them families with young children, while cities such as Bristol and Manchester saw influxes of ex-Londoners.

It can be difficult to leave a location you love, so think about the things you like most about it, then try and find similar aspects in a cheaper location.

6. Lock away your savings

When interest rates are low, it’s worth considering taking out an ISA (Individual Savings Account). These products allow you to save tax-free, and if you choose an ISA where your money is locked away, with penalties for early withdrawals, you’ll usually get a far better interest rate. This can also stop you dipping into your savings.

7. Buy with a friend

Getting on the property ladder can be tough if you’re single. It’s slightly easier if you’re a couple with two incomes, as you can both save and the mortgage will take both incomes into account, but you don’t have to be romantically involved to share a mortgage! Ideally, it should be someone you’ve lived with before, perhaps a long-term roommate, and someone who is financially responsible and you’re happy to live with potentially for years.

If you want to get on the property ladder, there are many ways that you can do so. Whether you make small or large lifestyle changes to get there, it will be worth it in the end.

For impartial first time buyer advice contact our expert team at Hamlet Homes Warrington on 01925 235 338 and we will be delighted to assist.

If you are looking for an agent that is well established, professional and communicative, whether you’re buying, selling or looking for an investment opportunity, then contact us to find out how we can get the best out of the Warrington property market.

Email me on manoj@hamletwarrington.co.uk or call on 01925 235 338 – we are based on the Warrington Business Park, Long Lane, WA2 8TX. There is plenty of free parking and the kettle is always on.

Don't forget to visit the links below to view back dated deals and Warrington Property News.

CLICK HERE TO FIND OUT HOW MUCH YOUR WARRINGTON HOME IS WORTH FOR FREE
Hamlet Homes Warrington, your local Estate Agent
Follow my Warrington Property Market Blog
Hamlet Homes Warrington LinkedIn Page
Hamlet Homes Estate Agents Warrington Facebook Page
Hamlet Homes Estate Agents Warrington Twitter Page











Friday, 26 March 2021

Sell Your Home: 6 Signs of a Great Estate Agent!


Whether you’re selling your home in Warrington or looking to rent or buy, choosing a great estate agent is a hugely important part of the process. Pick the right agent and your transaction is much more likely to go off without a hitch. You’ll be able to find the house of your dreams or get your property off the market much more quickly.

The question is, how do you distinguish between a great estate agent and a mediocre one? It can be hard to tell at the initial stage when the agent will be on their best behaviour trying to pitch their services to you. Luckily, there are some signs to look out for. Read on to find out how to spot a great estate agent:

1. They’ll have excellent online reviews

Thanks to Google, it is no longer possible for any service provider to get away with lousy service. Customers and clients can easily leave bad online reviews which will affect their future business. Look online before you decide on an estate agent. If they don’t have their own reviews section, Google Business usually has honest reviews from customers.

Search for reputable estate agents that have verified reviews. If they’ve delivered exceptional service in the past, it’s likely, they will again. The same applies to those who have delivered bad service and have poor reviews – avoid them!

2. They’ll often come recommended

One of the best ways to start your hunt for a great local estate agent in Warrington is to ask around for recommendations. If anyone within your friends and family circle is personally vouching for an estate agent, they’re likely to provide excellent service. It also adds an element of credibility, as the recommendation is coming from someone that you know and trust.

3. They’ve been doing this for a while!

Find someone equipped with the experience you need to navigate the property market. Gain an understanding of how much experience your estate agent has before choosing them for your home move.

The more experience an agent has navigating the housing market, the more easily they’ll be able to spot any issues and help you circumvent them. They may also have partners that they can recommend to help you with your move, such as independent surveyors and removal companies. If you’re buying or renting, we’d recommend opting for someone just like us as we have great local knowledge of the Warrington area.

4. Their average selling time speaks for itself

One of the signs of an effective estate agent is how quickly they can work to move your property off the market. While you want to ensure that they don’t rush the process and achieve a good price for your property, you also don’t want to wait too long when you’re ready to sell your house. A great estate agent will be skilled on how to market your property and will be able to find interested buyers and line up viewings until they get your house sold.

So, how do you find out whether your estate agent will be effective at selling your property? Ask them what their average selling time is. Beware of those with very short selling times, as this could have been done at the expense of price.

5. They offer a fair property valuation

To value a house accurately is a lot more work than you may think. All estate agents know that the property valuation you offer them could lead to you choosing to hire them or not, and they may adjust their valuation accordingly. Some agents may decide to overvalue the property to tempt you into working with them, only to reduce this to a more realistic valuation once you’ve chosen them. Opt for an estate agent that gives you a realistic valuation from the start that is aligned with the market value.

It’s perfectly okay to ask an agent to explain their valuation if you think it’s too high or too low. A great estate agent will happily explain their reasoning for their valuation and break down why they’ve given those numbers.

6. They have good communication skills

This is less easy to ‘measure’, but it’s one of the most important things that make up a great estate agent. They should be friendly and communicative so you can be sure that you will be kept informed throughout the process.

Suss out their communication style with a simple phone call or video call, although keep in mind that all agents will be putting their best foot forward at this stage!

If you are planning on moving to the Warrington area soon, why not get in touch. We’ll be happy to advise you on all our available properties in the area. Contact us on 01925 235 338 for more information and an expert, friendly service.

If you are looking for an agent that is well established, professional and communicative, whether you’re buying, selling or looking for an investment opportunity, then contact us to find out how we can get the best out of the Warrington property market.

Email me on manoj@hamletwarrington.co.uk or call on 01925 235 338 – we are based on the Warrington Business Park, Long Lane, WA2 8TX. There is plenty of free parking and the kettle is always on.

Don't forget to visit the links below to view back dated deals and Warrington Property News.

CLICK HERE TO FIND OUT HOW MUCH YOUR WARRINGTON HOME IS WORTH FOR FREE
Hamlet Homes Warrington, your local Estate Agent
Follow my Warrington Property Market Blog
Hamlet Homes Warrington LinkedIn Page
Hamlet Homes Estate Agents Warrington Facebook Page
Hamlet Homes Estate Agents Warrington Twitter Page

Thursday, 25 March 2021

Warrington Property Market Improved by 54.2% Over Pre-pandemic Levels


The Warrington property market, for people looking to sell, is at its sturdiest for at least the last five years with home buyers jumping onto the Warrington property ladder with abandon.

Warrington house prices are anticipated to rise throughout 2021 after the Stamp Duty cut (and subsequent extension until the autumn) and the newly revealed 95% mortgages for Warrington first-time buyers (and Warrington homeowners with minimal equity).

In addition, the continued low interest rates and the demand for larger homes because of lockdown means the Warrington property market should remain bullish for a while. There is a surge in potential buyers putting themselves on mailing lists with Warrington estate agents, making the biggest disparity between supply and demand for Warrington property for many years.

Fears of a cliff edge for the Warrington housing market at the end of March have dispersed, somewhat due to the Stamp Duty tax deadline extensions, but also because the elevated level of buyer demand caused by the three lockdowns has continued to swell since the start of 2021, meaning that today …

68% of Warrington properties on the market are Sold (STC)

Interesting, when utilising data from theadvisory.co.uk website, the Warrington average for the last five years has only been 44%, meaning there has been an uplift of 54.2% in the proportion of Warrington properties sold (stc) compared to that five-year average.




Yet what can’t be forgotten is that 9 out of 20 Warrington house sellers are also Warrington house buyers as well, so whilst they do indeed achieve a higher price for their Warrington property, they also have to pay more for the Warrington property they want to buy.

So, how much will Warrington house prices rise by?

Like all things in life, it’s all about demand and supply. I have discussed the demand, yet what about the supply of properties for sale?

There are 69% fewer Warrington properties for sale today compared to 6 years ago

Whilst February saw a lower-than-normal level of new properties coming onto the Warrington property market, the easing of lockdown roadmap and faster rollout of the vaccine is also persuading more Warrington homeowners (especially those older Warrington homeowners who have had their jabs) to start making the first steps towards moving home in 2021.

This will mean there will be more Warrington properties available for sale in the conventionally busier post Easter market in the coming weeks and months which should cause more equilibrium and help keep Warrington property prices in check.

These are interesting times for the Warrington property market. If you are a Warrington homeowner or Warrington landlord looking to buy or let your Warrington property in the coming weeks or months, don’t hesitate to drop me a line to discuss what all the points raised in article mean to you.


Don't forget to visit the links below to view back dated deals and Warrington Property News.

CLICK HERE TO FIND OUT HOW MUCH YOUR WARRINGTON HOME IS WORTH FOR FREE
Hamlet Homes Warrington, your local Estate Agent
Follow my Warrington Property Market Blog
Hamlet Homes Warrington LinkedIn Page
Hamlet Homes Estate Agents Warrington Facebook Page
Hamlet Homes Estate Agents Warrington Twitter Page


Friday, 19 March 2021

How to Keep a House Chain Progressing Smoothly

 Buying and selling a property in Warrington can be a super stressful time, and our responsibility is of course to ensure things go as smoothly as possible.

Perhaps you’re ready to move, but the people buying your house need their buyers to get up to speed. And those buyers also need their buyers to press the pedal down on the transaction!

Before you know it, suddenly you’re getting into a long old property chain, and we know that sometimes chains can break, taking with them your hopes of a move into a dream property.

This can be absolutely heartbreaking. Consumer body Which? surveyed 2,000 homemovers, and discovered “around three in 10 (28%) people have experienced a property purchase falling through”.

There are several reasons why a property chain breaks. But, the good news is, you can do something about it and play your part in making sure the chain keeps moving.

So, here are our top seven tips on how to keep your house chain moving.

1. Choose a Chain-Free Buyer


This sounds so simple, doesn’t it? You may get a few offers on your house, but only one may not be part of a chain. This means they don’t need to rely on something else happening in order to move. So, if you are lucky enough to get two or three people offering on your property (and the price is right), choose the one who you think will cause the least trouble!

Top Tip: This is where you can rely on us, your trusted estate agent in Warrington to do our job and find out more about your potential buyers.

2. Set Goals

When you are right at the beginning of the process with a potential buyer, make sure you stipulate, through your estate agent, your preferred timescales. Things may not always stick to plan, but if you are all aware of a date you are working towards, it will focus minds.

Top Tip: Be realistic. You may want your move to progress at lightning speed, but selling your home can be a complex process and take so much longer than you anticipate.

3. Be Prepared

When you’re thinking about property chains, it’s easy to think about what all the other parties are doing, and focus on how they can stop your chain from breaking. But don’t forget, you’re part of the chain too, so don’t be the one who holds things up! Make sure your paperwork is in order, finances organised and mortgage offers are on the table.

Top Tip: Make sure your paperwork is to hand to refer to, whether you’re at home or in the office. If a query arises there won’t be a delay in you responding.

4. Respond Well

Keeping the chain moving takes good communication from all parties, and that includes you. Your conveyancer may need information quickly or an email response before close of business on a particular day. Be accessible, and make sure everyone has the correct contact details for you.

Top Tip: Respond to any queries promptly to avoid delays in clarification. If you need to seek out information that you don’t have to hand, don’t put it off!

5. Use Experienced Professionals

You’re selling your house – probably your biggest asset – so you should ensure that you have professionals doing the job for you. Choose your estate agent, not necessarily on their fees, but on their experience and ability to keep things moving. You want them to be progressing and chasing where necessary, and making the calls and sending the emails.

Top Tip: Draw up your shortlist of reputable, local estate agents and speak with each of them. You need a good relationship with your agent so making sure you are on the same wave-length and you get a good vibe is important. Remember, how they act with you is also how they will act with potential buyers!

6. Think Outside the Chain

If there’s a problem with the house chain further up, consider selling your property and renting somewhere to live until the right property comes up for you rather than risk losing your own buyer. This might not work, of course, if you’ve got your heart set on somewhere in particular, but it could be an option.

Top Tip: Renting doesn’t have to be forever. You can usually enter into a short-term tenancy agreement which will give you time to look around and find somewhere new to call your own home.

7. Be Agile


Should a property chain break, and you lose the property you were going to buy, make sure you can move quickly when it comes to other alternative properties. Is it possible for the chain to discuss the issues and come to an agreement, perhaps to negotiate on prices?

Top Tip: If you’re ready for all eventualities, then a broken chain may not lead to your heart breaking too. It really doesn’t have to be a dead-end.

If you want expert help on buying and selling or any advice regarding being in a property chain, then simply get in touch with us, Hamlet Homes Warrington. Call us on 01925 235 338 or email manoj@hamletwarrington.co.uk to chat with a member of our friendly and experienced team.

If you are looking for an agent that is well established, professional and communicative, whether you’re buying, selling or looking for an investment opportunity, then contact us to find out how we can get the best out of the Warrington property market.

Email me on manoj@hamletwarrington.co.uk or call on 01925 235 338 – we are based on the Warrington Business Park, Long Lane, WA2 8TX. There is plenty of free parking and the kettle is always on.

Don't forget to visit the links below to view back dated deals and Warrington Property News.

CLICK HERE TO FIND OUT HOW MUCH YOUR WARRINGTON HOME IS WORTH FOR FREE
Hamlet Homes Warrington, your local Estate Agent
Follow my Warrington Property Market Blog
Hamlet Homes Warrington LinkedIn Page
Hamlet Homes Estate Agents Warrington Facebook Page
Hamlet Homes Estate Agents Warrington Twitter Page

Wednesday, 17 March 2021

Warrington First-time Buyers Can Now Buy Using the Government's 5% Deposit Mortgages


Being a Warrington first-time buyer in the last 12 months has not been an easy thing. Just before lockdown there were 400 ‘5% deposit mortgage’ deals and first-time buyers were able shop around to get the best deal. When the first lockdown hit, 5% deposit mortgages disappeared meaning that as many Warrington would-be first-time buyers were about to buy their first Warrington home in 2020, the rug was pulled from under their feet.

Today, you can count on two hands the number of mortgage deals which allow a 5% deposit. Even worse, the number of hoops one has to jump through to get a 5% deposit mortgage is very high (plus you have to pay handsomely for the privilege, with mortgage rates of at least 4.15%).

In putting down a 5% deposit, you borrow the remaining 95% as a mortgage. These 95% mortgages (or Loan to Value) were very popular with Warrington first-time buyers before the Credit Crunch. Nearly 1 in 6 mortgages were 90% to 95%+ Loan to Value mortgages in 2007 (15.5%), yet as the Global Financial Crisis hit in 2008/9 that dropped to only 1 in 63 mortgages being in 90% to 95%+ range in 2010 – meaning many Warrington first-time buyers were unable to buy their first Warrington home between 2010 and 2015.



Yet in the recent Budget, Rishi Sunak has vowed to back the building societies and banks so that they can offer more of these higher 95% Loan to Value mortgage deals.

Many people have said this will mean there will be a Warrington house price boom – especially as Stamp Duty is extended until September

This scheme is nothing new as a practically identical scheme was launched by George Osborne in the 2013 Budget with his Help to Buy Scheme. Nearly one in five houses sold in the year after that budget used this scheme, yet Osborne’s was only for first-time buyers and it was only for brand new homes (not second-hand homes). Whilst there is no doubt this caused an increase in house purchases, many commentators said it was a backdoor method to keep the country’s new homes builders afloat.

The big difference with this new 2021 scheme is that it is available for Warrington second-hand homes as well and is open to all Warrington owner occupiers moving home

Yet, what will the banks’ mortgage interest rate charge be?

Although no building societies or banks have yet publicised what mortgage rates they will charge, all the High Street lenders including NatWest, Santander, HSBC, Virgin Money, Barclays and Lloyds have stated they intend to offer these 95% LTV mortgages.

Under the Government’s mortgage guarantee to the Banks, Westminster will guarantee 20% of any mortgage offered at 95% Loan to Value. In principle, that means that building societies/banks should be able to offer the low mortgage rates as those available to people wanting to borrow 75% Loan to Value.

At the moment the average five-year fixed rate mortgage is 3.6%
with a 10% deposit but if you have a 25% deposit, you can fix for
five years at 1.63%

However, don’t forget though that the banks will be charged a ‘still to be decided’ amount to use the Government guarantee. On the last Help to Buy Scheme, it was rumoured they were charged 0.9% of the mortgage borrowed, so this cost would have to be passed on to the first-time buyer. I would suspect the eventual rates Warrington first-time buyers will have to pay will be somewhere in the region of 3%.

This new 95% mortgage/5% deposit scheme is only going to work if the banks and building societies have sensible mortgage rates as it needs to help those Warrington first-time buyers it was intended to benefit, who are finding it hard work to get on the first rung of the Warrington housing ladder.

It all comes down to how anxious the banks and building societies feel about the true long-term effect of the pandemic once the furlough scheme ends in the autumn. Only time will tell.

Yet, to give you an idea of the difference the mortgage rates scheme will make on a typical Warrington terraced/town house …

the average price paid for a Warrington terraced/town house in
the last 12 months was £149,700

Assuming a 35-year repayment mortgage and borrowing that amount on each scenario:

  • At the current best 95% LTV mortgage rate (i.e. 5% deposit) of 4.15% mentioned at the start of the article, that would cost £676 per month in mortgage payments
  • At the current average 90% LTV mortgage rate (i.e. 10% deposit) of 3.6% mentioned in the middle of the article, that would cost £627 per month in mortgage payments
  • At the best 75% LTV mortgage rate (i.e. 25% deposit) of 1.63% mentioned at the start of the article, that would cost £468 per month in mortgage payments
As you can see, quite a difference.

I have to applaud Rishi Sunak for this initiative, yet will it be ‘fields of clover forever’ for the Warrington property market with the new scheme? No, it won’t.

It will be a good boost to the Warrington (and UK as a whole) property market. Whilst the mortgage guarantee offers a small portion of security for the lenders, it does focus on the riskiest part of the housing market. Many lenders still have cold shivers of the Northern Rock 125% mortgage debacle from a decade ago and those memories still ring true today.

The fact is these types of mortgages will be a higher risk, even if the Government are underwriting them with their smaller deposits, which will come through in bank’s and building societies higher pricing for these mortgages. Also, the lenders are already at near full capacity trying to get hundreds of thousands of existing property sales and purchase deals through because of the Stamp Duty rush over the last 9 months. I await the rates in early April and will make comment again.

If you are a Warrington homeowner, potential Warrington first-time buyer or anyone involved in the Warrington property market and you would like to chat about anything I’ve covered in this article or any of my other articles on the Warrington property market, please don’t hesitate to drop me a line.


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