Mortgages & home | Mail Online

Thousands of potential second-time buyers trapped on first rung of the property ladder because of negative equity

House trap: Thousands of second-time buyers have been left trapped on the first rung of the property ladder

A large number of second-time buyers are stuck because they are in negative equity or their home hasn’t increased enough in value for them to purchase their second home. Over a quarter are stuck in this trap, while the costs involved in moving have also meant one in three of all prospective second-time buyers are having difficulty in climbing the property ladder, the Post Office’s Step-Up report found.

SIMON LAMBERT: The generation sat on a mortgage timebomb built from too high house prices and too low interest rates

Timebomb: More than a decade of too high house prices and too low interest rates spells trouble.

The Bank of England is dishing out funds to encourage more low rate mortgages, while warning of the perils of cheap money. What could possibly go wrong?

The timebomb built from too high house prices and too low interest rates

Interest rates cannot go up now because so many young homeowners face mortgage timebomb, Bank of England warns

Sir Mervyn said that mortgage borrowers - typically those in their 30'2 and 40's - had borrowed so much that any rise in interest rates would push many into an unsustainable position.

Sir Mervyn said that many homeowners faced a debt timebomb because they had failed to use the opportunity of record low interest rates to reduce their mortgage debt.

London will 'become unaffordable for everyone but wealthiest' as rental prices increase six years out of seven

Fig 1: Private rent changes in England during the last seven years

According to a report by the Office for National Statistics, a property rented for £500 a month in May 2012 would be rented for £506.50 last month.

The end of the annual rent row? Renters given more security as Nationwide allows buy-to-let landlords to offer three-year tenancies

Nationwide is seeking to provide more security for tenants and landlords

Many of the 9m renters in the UK are on year-long leases, leaving them vulnerable to annual rent increases and facing the prospect of moving regularly if they can no longer afford to stay where they are.

'It's been two years since the sale of our villa but we're still owed £5,000': The Brits owed thousands by the Spanish taxman

Still waiting: Victoria and Peter Shelley, who made a £255,400 when they sold their villa near Marbella, are still owed £5,000 from the Spanish government

Expats fleeing recession-hit Spain are having thousands of pounds snatched by its cash-strapped government, including the Shelleys (pictured) who are owed £5,108.

Average UK asking price reaches record high above £250,000 for the first time

Beginning of a boom?: Asking prices for homes in the UK have reached an all-time high according to Rightmove

New sellers were valuing their properties at £252,798 in June - a 1.2 per cent month-on-month increase on a previous record set in May - according to website Rightmove.

Building societies warn Government should prepare for end of Help to Buy scheme or risk new house price bubble

Help to Buy: The Government scheme looks likely to help a decent proportion of people get onto the property ladder, but the BSA has warned it could drive up prices.

Consumer confidence in the housing market is growing, a BSA report has found, which is partially down to the Government's scheme designed to get first-time buyers onto the ladder.

MORTGAGES, HOUSE PRICES & PROPERTY NEWS

'He painted his naked wife on the bedroom wall': Estate agents reveal home improvement disasters that take thousands off house prices

Not to everyone's taste: Our estate agents report their worst experiences of sellers putting off buyers with odd decor or DIY disasters.

We asked estate agents to tells us their tales of home improvement disasters they have devalued sellers' homes. High points include an inappropriate swimming pool and a sinister room of dolls. ...read

House hunters hit a three-year high while mortgage rates fall. What next for house prices?

Property sales are finally on the up, while better mortgage deals are landing regularly. So what now for house prices?

Rates fall for first-time buyers and the best five-year fix for big deposits is below 2.5%. What next for mortgage rates and should you fix?

A five-year fix can be had at 2.49%, and borrowers with smaller deposits are also seeing cuts. So is now the time to lock in?

'We'll do up our house with cash we saved on charges': Five steps to securing the best mortgage deal

Savings: Ross Tiplady and Emma Ashworth found a fee-free mortgage for their cottage

Is it really worth paying £2,000 or more in fees for a best-buy new mortgage? That is how much first-time buyers and remortgage borrowers are being charged for some of the latest fixed-rate and tracker deals. But Ross and Emma found a fee-free mortgage for their cottage. Here are our five steps to securing the best deal. ...read

HOUSE PRICES: LATEST ON THE PROPERTY MARKET

The great house price schism: 100 buyers per home in Brixton but a three-bed house in Blackpool can't sell for £50,000

Still hope: It is believed that other parts of the country will start to pick up because banks are offering better mortgages, and confidence in the economy is improving

Property prices in Blackpool have fallen by 8 per cent this year, while in London house values are rising at their fastest level for six years. The capital, in particular, has developed its own market with the average property price at a record £375,795. Could this divide simply increase?

'Generation rent' may be locked out of the property market for up to 30 years, charity warns

Money pit: House prices are still too high that some people may never be able to afford to buy their own home, according to research by Shelter

Housing charity Shelter said its research showed 'generation rent' was here to stay after discovering it could take a couple in their twenties with children up to 12 years to save a deposit to buy their own home.

RICHARD DYSON: The house prices generation gap means the Bank of Gran and Grandad is good for £1trillion

The Bank of Mum and Dad is going bust, but the Bank of Gran and Grandad is flush with property wealth, a further sign of the great generational divide.

House sales reach highest level for three and a half years as buyer confidence continues to surge

Chartered surveyors sold an average of 17.9 houses during the three months to May, the RICS residential market survey found.

MORTGAGES MUST READ

Beat the savings crunch: Make use of record-low rates by overpaying your mortgage

Benefiting from low rates: Most lenders let you overpay 10¿per cent of your outstanding mortgage balance a year without penalty

A mix of record mortgage rate lows and paltry High Street savings rates means it has never made so much financial sense to use a nest-egg or unused salary to overpay on your home loan instead. Pay more than you normally would to your lender each month, and you’ll shorten your mortgage by years. ...read

Now mortgage borrowers can lock in to a record 3.89% rate for 10 years

Best rate: Yorkshire Building Society has slashed the rate on its 10 year mortgage to 3.89 per cent

New Yorkshire Building Society deal means monthly payments on a £150,000 mortgage are £783. The Total cost is £94,090, including a £130 booking fee.

The Post Office has cut the rates on its two and five-year fixed mortgage range. But does its latest proposition deliver?

First past the post: The rates will push the Post Office to the top of the best buys, but it is worth checking the costs

Post Office Mortgages has unveiled a range of new rates across its two and five-year fixed rate range. The range, with loans to value from 60 to 90 per cent LTV, will appeal to first time buyers as well as second steppers.

Mortgage calculators

BUY-TO-LET: PROPERTY INVESTING ESSENTIALS

Landlords make hay as lenders unveil lower buy-to-let rates including cheapest ever two-year fix

Lower rates: The best buy-to-let mortgage rates have fallen further this week

A number of buy-to-let mortgage providers have launched new deals for landlords – including those investing for the first time and those looking to expand their portfolios. The Mortgage Works, a subsidiary of Nationwide Building Society, has launched its lowest ever fixed-rate at 2.49% from today and is available to both first-time and experienced landlords. ...read

'I've not had any problems letting': Two-thirds of investors make buy-to-let their pension

Full house: So far, none of Kevin Walter's properties has been empty

A survey by The Mail on Sunday among prospective and existing buy-to-let investors indicates most are using, or planning to use, bricks and mortar to generate income rather than capital growth. Kevin Walter is one of those.

Fears that tenants are resorting to payday lenders as rogue landlords cheat on deposits

Deposit disputes: buy-to-let landlords are still cheating tenants out of their deposits despite the introduction of a Government-backed scheme aimed at protecting both parties in the event of a tenancy dispute.

Some 30 per cent of 4,000 private tenants surveyed in England were in the dark about their landlords' obligations to protect their deposits, Shelter found.

Ten tips for buy-to-let: the essential advice for property investors

For many buy-to-let looks an attractive income investment in a time of low rates and stock market volatility. Read our top ten buy-to-let tips

A leg-up the property ladder to a £600k home: But is Help to Buy really worth signing up for?

New home? Find out which schemes are available - but beware of pitfalls

First-time buyers and movers can get a turbo boost on a new-build home, with an interest-free loan to slash their potential mortgage repayments. But is it worth taking?

ASK AN EXPERT

Can I 'swap' houses with my parents so that we can continue to live in the same area - and reduce stamp duty?

House swap: What are the implications of selling our homes at knockdown prices to family members?

My parents want to downsize and my wife and I need a bigger home - can we swap houses and each pay less to reduce stamp duty?

How can I get my deposit back from my letting agent? We left our property in much better condition than we found it

Caught out: couple struggle to get their deposit back - despite finding mice in the property

I have been trying to get my deposit back from a letting agent for months now. It says there will be charges but I disagree. What are my options?

Help! Our mortgage lender has told us to stop letting out the retirement home we can't afford to move into

Retirement dreams: But if your plans are put into disarray, mortgage lenders may not allow you to let a property you can't move into.

We bought a house in 2007 to retire to, but the crash wiped out our pensions and we have to keep working. Now our lender has ordered us to stop letting it.

I'm wasting money paying rent and want to buy a home, how much can I borrow on my £14k salary?

Property ladder: How much a hopeful first-time buyer can borrow depends on their other outgoings.

I'm currently working full time earning £14,381, what is the biggest mortgage I could get? Our experts take a look at a hopeful first-time buyer's prospects.

Can I trust property company that cold-called to say it can sell my Florida timeshare for £7,000 - but then thought it was in Malta?

Mix up: Salesman wanted an upfront fee to sell a timeshare in Malta, but it was in Florida

Our Reader's Champion answers your financial SOS's which this week include a timeshare nightmare, an Isa shambles, and another taxman blunder

GUIDES & TOOLS TO BEAT THE PROPERTY MARKET

First-time buyers: The essential tools and tips to help you get on the property ladder

Property ladder: This is Money's tips can help you buy your first home

High property prices have left first-time buyers struggling, but This is Money can help with the latest news, features and advice. The biggest weapon in a first-time buyer's arsenal is knowledge about the homebuying process and an awareness of what's going on in the property market. So, get essential tips and tools here. ...read