First Time Buyers have received more attention this week with The Hanley Economic Building Society being the latest to offer an attractive product to this sector. At 95% of the property value and with a 3 year discounted rate of 4.75% (5.3% APR) and a fee of just £99 upfront and £400 on completion, this is a bold attempt from the lender to attract first timers. Only six distributors in the UK have access to this product (AToM are one!) and I suspect funds will be utilised on this product pretty quickly for those with just a 5% deposit! Well done The Hanley!
Leeds Building Society have also been busy in the products department and launched a 1.99% (4.5% APR) fixed rate for two years for purchase or remortgage. They will lend up to 70% of the property value and will charge a £199 booking fee upfront and £1,800 completion fee.
On both these products, redemption penalties will apply during the product period and terms and conditions apply!
In other news, according to creditaction, Rightmove has said new sellers raised average asking prices by 0.7% (£1,596) to an average of £233,139 in September. Prices rose 1.5% compared to September 2010.
House purchase approvals (35,226) were higher in August than in July according to the British Bankers Association, and 14% higher than in August 2010. The average loan approved for house purchase in August was £145,500 which is 1% higher than a year ago.
A moneysupermarket.com survey has found that 27% of Brits currently spend over 40% of their wages on paying off non-mortgage debt. The figures show that the average person pays off £322 every month, which is equivalent to a quarter of the average monthly income for a UK adult (currently £1,288). Even more strikingly, 8% of people say that they spend over 80% of their wages on repaying debt.
And finally, a study by Endsleigh suggests that twice as many people living in the UK are renting (45%) compared to those owning their own home (23%). Middlesex is the most popular area, with over three times as many renters (51%) as buyers (16%). It is closely followed by East Sussex (48%), Surrey (46%) and Berkshire (46%) – all of the top 10 regions for renting are in the South. According to Endsleigh, 62% of renters intend to buy a property in the next five years.