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Category: Finance

Energy Saving Tips – What Works and What Doesn’t

Over the last few weeks, we have seen reports of rising energy costs as energy companies pass on increases to consumers. Household energy bills look set to rise by hundreds of pounds next year and the energy price cap, which protects domestic consumers, could soar by £400 in the spring.

Energy regulator Ofgem said the price cap “will ensure that consumers don’t pay more than is absolutely necessary this winter” but if gas prices stay high, the price cap will rise.

A new home is extremely energy efficient and will reduce your energy costs drastically compared to an older property in need of replacement windows, insulation or roofing.

Many households already have become familiar with energy-saving hacks over the last month to lower monthly costs, but do you know which ones work and which ones don’t? With energy bills set to rise, now could be the time to make some simple changes and reduce your energy consumption.

What works:

Smart meter – Although a smart meter won’t save energy or reduce your energy bill, it can give you real time information on your energy usage and this allows you to nore effectively manage your usage and change your day-to-day behaviour.

Carpets – carpet offers great insulation especially in older homes where original floorboards have gaps which can let valuable heat escape. Carpet in combination with a high-quality underlay will result in less heat escaping – as will a thick rug.

Draft excluders – by putting draft excluders by your door or windows, you can stop valuable heat escaping. You could even put a sponge in the letterbox to prevent heat escaping outside.

Using appliances at night – firstly, check your energy tariff. Depending on which energy tariff you are on, it may that you are on an economy tariff which means energy is cheaper at night, in which case it makes sense to run your washing machine, dishwasher or tumble dryer at night.

Reflective panels – putting reflective panels behind the radiator is a popular energy saving hack, but this only works on external walls as it helps to prevent heat escaping outside – it won’t be effective if you live in a terraced house.

What doesn’t:

Painting radiators – another hack is to paint your radiators black but there is no evidence to suggest this works.

Turning off your hot water – this won’t save you money it’s better to insulate your boiler tank to prevent heat from escaping and if you’re on an Economy tariff turn your hot water on at night when it’s cheaper.

Leaving the heating on – some people believe it’s best to leave on your heating all day on a low setting, but it’s better to only heat your home when required. It’s also better to have a wireless system such as Nest or Hive so that you can ensure the heating is never left on as you’ll be able to turn it off and on when you aren’t at home.

Looking for a new energy saving home?

We are delighted to announce that we have released the long-awaited selection of one and two-bedroom apartments at our newest Glasgow development, Pollokshaws Living. Our previous release of properties in Glasgow’s southside were snapped up in just days and we anticipate a high level of demand for these apartments.

There are nine remaining one and two-bedroom apartments will soon be available to reserve with prices ranging from £160,995 to £179,995. Included in the release are:

  • The Stewart a one-bedroom apartment priced from £160,995
  • The Glen a two-bedroom apartment priced from £177,995, and
  • The Monteith a two-bedroom apartment also priced from £177,995

These impressive properties offer flexible accommodation ideal for first-time-buyers, second steppers looking for an additional bedroom to accommodate home working, professionals relocating close to transport links and amenities, and property investors.

Contact Amanda to find out more and to make an appointment from Thursday 16th September on 07498 057112 or pollokshawsliving@urbanunionltd.co.uk

 

Low Borrowing Costs and Rising Mortgage Availability

It has been a challenging year for many aspiring homeowners with the pandemic forcing many people to put their home ownership plans on hold. We saw the withdrawal of high loan to value mortgages last year but thankfully the mortgage market has bounced back over recent months with not only the number of 95% mortgage deals rising month on month, but low borrowing rates. Taking out a mortgage is currently more affordable than ever, and if you opt for a fixed rate you can plan for the future much easier knowing that your mortgage repayments won’t go up for the foreseeable future.

The number of mortgage deals currently available to UK borrowers is currently at its highest level since March 2020 with over 4,500 deals available – according to Moneyfacts there are 700 fewer mortgage options than there were before the start of the pandemic, and in June 269 were launched.

The mortgage guarantee scheme was introduced in April of this year with the aim of encouraging lenders to re-introduce high loan to value mortgages to the market meaning that those with only a 5% or 10% deposit could purchase a home, whereas during the pandemic buyers needed around 20%. At present, the number of mortgages requiring a 5% deposit has leapt almost twentyfold over the last year. This time last year there were just 14 95% mortgages available – now there are 253. In addition, house prices rose at their fastest monthly rate since 2007 in September according to the Halifax house price Index – increasing by 1.7% to £267,587 and by 7.4% year on year.

For the first time since 2018, Moneyfacts has recorded an increase in mortgage options for all deposit sizes.

The Mortgage Guarantee Scheme kickstarted the mortgage market for those with a small deposit – with significant numbers of deals available with a 5% or 10% deposit. It is open to all buyers – those buying a first home as well as those moving up the property ladder – and can be used on properties up to the value of £600,000.

Pollokshaws Living

We are delighted to announce that we have released the long-awaited selection of one and two-bedroom apartments at our newest Glasgow development, Pollokshaws Living. Our previous release of properties in Glasgow’s southside were snapped up in just days and we anticipate a high level of demand for these apartments.

Ten one and two-bedroom apartments will soon be available to reserve with prices ranging from £160,995 to £179,995. Included in the release are:

  • The Stewart a one-bedroom apartment priced from £160,995
  • The Glen a two-bedroom apartment priced from £177,995, and
  • The Monteith a two-bedroom apartment also priced from £177,995

These would make an ideal investment property in an increasingly popular area.

 

Why This Could be the Best Time to Buy Your First Home

The property market is starting to cool down, offering a renewed opportunity for people to get their foot onto the property ladder. Recent research has revealed that 40% of first-time buyers plan to purchase their first home between September and November 2021.

Property demand over the last 18 months has been unprecedented – for several reasons. Interest rates are low, there is an increase in the availability of high LTV mortgages, the stamp duty/LBTT holiday gave the market a boost, there has been a re-evaluation of what we want from our homes, and demand continues to outweigh supply which has meant homeowners have moved forward plans to capitalise on their gains.

These factors have led to a steep rise in house prices which has priced many buyers out of the market. However, now could be the time where that’s all about to change. Prices are levelling off or falling in some places and there is now support in place for first-time buyers making a home purchase more affordable.

In Scotland the LBTT holiday ended in March and across England and Wales, the stamp duty holiday came to an end in June and this has fuelled interest in first-time buyers looking to buy a home. In order to make informed decisions around where, how and what to buy, technology is also providing a helping hand to many first time buyers that need professional advice and assistance.

Recent research has shown that understanding mortgages and property jargon is a barrier to home ownership to many young people, however there is a lot of information online about everything from mortgages to legal advice, in addition, new technology has helped to make the home buying experience into one user-friendly process. Not only does it save first time buyers time and money by helping to find them the right home, in the right area, at the right budget, but it can also provide much needed information on the process of buying a home.

Even though the pandemic meant that prices went up at record-breaking rates, it’s believed that the market will calm down and cool off which will give first-time buyers a chance to look past the uncertainty of the pandemic and provide an opportunity to buy their first home.

As prices start to level off in the next 3-6 months there is an opportunity for first-time buyers who managed to save a deposit could purchase a property before the market is predicted to pick up in the second half of 2022.

Buying a home at a fixed price could be an ideal scenario as there are no offers over or closing dates to content with.

At Urban Union we aim to make the process of finding your first home less stressful and time-consuming with a simple reservation process – take a look at our handy guides. 

New release Pollokshaws Living

The long awaited collection of high quality one and two-bedroom apartments starting from £160,995 will be released from Thursday 16th September. Our last release sold in a matter of days, and we anticipate high demand for these homes.

Pollokshaws Living is within an easy commute of Glasgow city centre and Pollokshaws West train station is very close to the development. The M77 motorway is within a five-minute drive, as is Silverburn Shopping Centre. The development is next to a range of amenities and Pollok Park, which provides the perfect escape from city life. Nearby Shawlands has a host of bars, restaurants, independent shops, boutiques and health and sports facilities.

Find out more. 

First time buyer?

Are you looking to purchase your first home, but don’t understand how mortgages work? According to a Bank of Scotland study carried out last month, a quarter (25%) of young Scots aged 18 to 34 said a lack of financial knowledge is a key barrier to home ownership.

The study showed that 39% of young people in Scotland were unable to confidently outline the mortgage process and that the key barriers for home ownership was affordability (73%), saving for a deposit (62%) and finding a suitable home (34%).

Half of all 18 to 34-year-olds either rent from a private landlord, while 34% rent from a private landlord, 16% life with their parents and 21% live in a mortgaged home.

A quarter of those who live with their parents are doing so by choice whilst three quarters are only at home because they have no other option and cannot afford to move out. Some young people anticipate that inheritance will help them release their home ownership ambitions but 11% believe they will never be able to afford their own home.
Younger people who plan to purchase their own home believe they will achieve this by the time they are 31 – the average first time buyer in Scotland is 30 years old according to Halifax.

The research also found that young Scots aren’t financially confident when it comes to understanding how mortgages work, and this gap in their knowledge is causing them to delay their home ownership dreams.With that in mind, here’s a brief guide to give you some tips to help you secure a mortgage.

Finding a high loan to value mortgage

Although the pandemic meant that many lenders withdrew many mortgage products, we have seen the reintroduction of some great deals with low rates making home ownership much more affordable and accessible for first time buyers. There are plenty of 90 or even 95% mortgages available but it’s essential that you can afford the repayments. Talk to a mortgage broker who can search the whole of the market to find the best deal and to explain how the application process works. You could also discuss a guarantor mortgage whereby your parents or grandparents will secure your mortgage against their home or put their money into a fixed-term account.

Mortgage Guarantee Scheme

The mortgage guarantee scheme is a 95% loan to value (LTV) mortgage scheme to help buyers with a 5% deposit. Under the scheme, buyers can purchase a property priced up to £600,000 and it is open to everyone, not just those who are buying their first home and never had a mortgage before – as was the limitation for the Help to Buy Scheme.

New build

With house prices rising since the housing market reopened at the end of June at an unprecedented rate – due to the stamp duty holiday and a re-evaluation of buyers’ priorities – buying at a fixed price means you aren’t being priced out of the market. The price you see is the price you pay with no closing dates, offers over or paying over the odds due to high competition for the same property. In addition, there are often house builders incentives such as free fixtures and fittings, stamp duty bills and legal fees.

Ensure your credit rating is in order

It’s important that you have a good credit score so that you can obtain a good rate on your mortgage – the lower the score the lower risk you are considered to be by the lender, and the deals available to you will be limited. Check your credit score before you look to buy a property to give you time to improve this.

A larger deposit

If you can gather together a larger deposit to put towards the cost of your mortgage it will keep your outgoings down and open up betresr rate mortgages. Ideally you want to have 15% deposit to get the best possible deal.

New release Pollokshaws Living

The long awaited collection of high quality one and two-bedroom apartments starting from £160,995 will be released from Thursday 16th September. Our last release sold in a matter of days, and we anticipate high demand for these homes.

Pollokshaws Living is within an easy commute of Glasgow city centre and Pollokshaws West train station is very close to the development. The M77 motorway is within a five-minute drive, as is Silverburn Shopping Centre. The development is next to a range of amenities and Pollok Park, which provides the perfect escape from city life. Nearby Shawlands has a host of bars, restaurants, independent shops, boutiques and health and sports facilities.

Find out more. 

Looking for your first home?

Although last year saw a withdrawal of many high loan-to-value mortgages, these are now largely available once again making home ownership within many buyers’ reach once again.

At present there are plenty of 90% and 95% loan to value mortgage deals available, which means that you only need a 10% or 5% deposit in order to secure a mortgage.

Finding a high loan to value mortgage

Although most lenders withdrew their mortgage deals during the pandemic, many of them have reintroduced some fantastic deals with low rates making home ownership affordable for first time buyers. If affordability is still an issue, then you could consider a guarantor mortgage whereby your parents or grandparents will secure your mortgage against their home or put their money into a fixed-term account. Be aware that your family member’s cash, or property is at risk. Talk to a mortgage broker to find out what these deals involved and whether you are eligible.

Government schemes

There has been a high level of demand for homes since the property market re-opened last year due to pent up demand, the stamp duty holiday, low interest rates and a reassessment of buyer’s requirements. Last year buyers faced having to raise deposits of around 20% in order to secure a loan and this was against a backdrop of house prices increasing and, as a result, a substantial number of first time buyers have had to put their plans on hold. This scheme means that those with a small deposit can now realise their dream of getting onto the property ladder.

Although Help to Buy (Scotland) and the First Home Fund have now ended,  the government backed ‘Mortgage Guarantee Scheme’ came into effect from April this year. The scheme aims to help buyers with a 5% deposit. Under the scheme, buyers can purchase a property priced up to £600,000 and it is open to everyone, not just those who are buying their first home and never had a mortgage before – as was the limitation for the Help to Buy Scheme. This means that the scheme will help both first-time buyers as well as those looking to move up the property ladder.

Buyer incentives

House builders often have incentives such as free fixtures and fittings, stamp duty bills and legal fees.

Pool resources with friends or family

One of the most common ways to purchase a property is to pool resources with friends, a partner or family. The ‘bank of mum and dad’ is increasingly popular but whoever you are committing to buying a home with, you need to think about what will happen if one party wants to sell or if they are unable to meet their share of the mortgage repayments. If you borrow you as borrowers are ‘jointly and severally liable,’ the lender can chase either of you for missed payments.

Buy at a fixed price

With house prices rising since the housing market reopened at the end of June at an unprecedented rate – due to the stamp duty holiday and a re-evaluation of buyers’ priorities – buying at a fixed price means you aren’t being priced out of the market. The price you see is the price you pay with no closing dates, offers over or paying over the odds due to high competition for the same property.

Reassess your wish-list

Lenders are becoming increasingly tough on what they will lend, resulting in stricter criteria for calculating what you can borrow, based on your income and expenditure. Some lenders are offering 4.5 times your salary instead of 5.5 previously which impacts what you can afford to buy. With this in mind it may be worth reconsidering where you want to live and the sort of home you want to buy. Do you need to live near public transport and travel links, could you purchase a new build home to make it more cost efficient and do you need an extra bedroom?

Credit rating

It’s important that you have a good credit score in order to obtain a good rate on your mortgage – the lower the score the lower risk you are considered to be by the lender. Check your credit score before you look to buy a property to give you time to improve this.

A larger deposit

If you can cobble together a little more savings to put towards the cost of your mortgage it will keep your outgoings down and open up more mortgage options. Some lenders are offering 10% mortgages aimed at borrowers in the local area and for those in particular professions. Ideally you want to have 15% deposit to get the best possible deal.

Talk to us at Urban Union if you’re looking for your first home. Our properties can be reserved with a small reservation fee and are available at a fixed price in our Glasgow and Edinburgh developments.

 

The Mortgage Guarantee Scheme

The mortgage guarantee scheme is a 95% loan to value (LTV) mortgage scheme to help buyers with a 5% deposit. Under the scheme, buyers can purchase a property priced up to £600,000 and it is open to everyone, not just those who are buying their first home and never had a mortgage before – as was the limitation for the Help to Buy Scheme. This means that the scheme will help both first-time buyers as well as those looking to move up the property ladder.

The good news is that this scheme has prompted lenders’ to offer high LTV mortgages independently of this scheme – opening up the property market to first time buyers once again.

There has been a high level of demand for homes since the property market re-opened last year due to pent up demand, the stamp duty holiday, low interest rates and a reassessment of buyer’s requirements. Last year buyers faced having to raise deposits of around 20% in order to secure a loan and this was against a backdrop of house prices increasing and, as a result, a substantial number of first time buyers have had to put their plans on hold. This scheme means that those with a small deposit can now realise their dream of getting onto the property ladder.

Although the new scheme is available through many of the large lenders including Barclays, Lloyds, HSBC and Santander, many others are offering high LTV mortgages so it’s worth getting financial advice to find out which mortgage product is right for you.

How the scheme works

The mortgage guarantee scheme means that the government will repay lenders some of their losses if the buyer defaults on their mortgage payments. In return for the guarantee, lenders will sell mortgages worth up to 95% of the property price.

The mortgage application for this scheme will be the same as applying for a standard mortgage – you will have to undertake affordability checks and show that you can afford the monthly repayments. With the existing Help to Buy scheme, the government would lend you 20% of the cost of your newly built home from an approved developer and would share in any increase in the value of the property. Find out more about this scheme. 

Find out more about our properties. We have now released our next properties at the highly popular Pollokshaws Living.

 

The Rising Number of 95% Mortgages

Following a challenging year with a widescale withdrawal of high loan to value mortgages, the good news is that the mortgage market is bouncing back with the number of 95% mortgage deals rising from 34 to 112 in just one month.*

The mortgage guarantee scheme was introduced in April and aimed to encourage lenders to bring back high loan to value mortgages to the market meaning that those with only a 5% deposit could purchase a home. The scheme is open to all buyers – those buying a first home as well as those moving up the property ladder – and can be used on properties up to the value of £600,000.

 

 

Even though the government’s scheme has been introduced, only 40% of lenders are using it. They saw it as a sign of confidence in the housing market and decided to launch their own products independently of the scheme. Lloyds, Santander, Barclays, HSBC and NatWest are all offering the loans, while Virgin Money is set to start offering them this month.

At present, mortgage availability is back to 75% of the levels we saw before the pandemic and for those with a larger deposit, interest rates are still historically low.

Along with the increase in 95% mortgage products, there were 41 more products introduced for buyers with a 10% deposit bringing the total to 481. This time last year there were only 100 available.

Moneyfacts

 

Looking for your first home?

Although the pandemic resulted in the withdrawal of mortgage products last year, the good news is that they are now edging their way back into the market especially with the introduction of the Mortgage Guarantee Scheme. This means that, subject to meeting lenders’ criteria, you can once again purchase a property with a 5% deposit as many of the high street lenders have joined the scheme. What’s more, when you purchase a newly built home you aren’t subject to making ‘offers over’ and being priced out of the sale due to competition to high quality homes. You simply obtain a mortgage in principle, pay a reservation fee and the process begins.

Securing a high loan to value mortgage

The mortgage guarantee scheme launched at the start of April this year. The scheme means that the UK government will guarantee 95% mortgages for those with just a 5% deposits. Under the scheme, the government guarantees the portion of the mortgage over 80% which essentially means that the government will partially compensate the lender if a homeowner defaults on  their mortgage. It is similar to the previously available Help to Buy mortgage guarantee scheme.

Who can apply

Unlike Help to Buy, the Mortgage Guarantee Scheme is available to everyone, not just first-time buyers. You’ll need to be buying a property up to the value of £600,000 to live in yourself, so it won’t apply to second or holiday homes and buy-to-let investments.  You cannot use the scheme with an interest-only mortgage and will need to pass the usual affordability checks set by the lender, including affordability and a credit score assessments. In addition, the mortgage you’re applying for will need to be for between 91% and 95% of the value of the property you’re buying. Finally, you’ll need to apply before the scheme ends on 31st December 2022, although it could be extended.

Find out more 

Bank of Mum & Dad

An increasingly popular way to buy your first home is to obtain help from your parents or grandparents. According to the latest figures from Aldermore the number of first-time buyers using family funding to buy their first home has risen from 22% in March 2020 to a third 33% in March 2021. There has been a huge increase in the percentage of those remortgaging their property to help their children buy a home – from 9% in March 2020 to 38% in March 2021. Other popular ways to release cash is to downsize (18%), withdrawing pension funds (17%) and selling stocks and shares (16%).

Buy at a fixed price

With house prices rising each month as demand outweighs supply,  buying at a fixed price means you aren’t being priced out of the market and paying over the odds in order to secure a home. There is no danger of paying over the odds due to high competition for the same property.

Ensure you have a a good credit rating

It’s important that you have a good credit score in order to obtain a good rate on your mortgage – the lower the score the lower risk you are considered to be by the lender. Check your credit score before you look to buy a property to give you time to improve this.

A larger deposit

If you can put more down on a property your mortgage rate and your outgoings will be lower. Some lenders are offering 10% mortgages aimed at borrowers in the local area and for those in particular professions. Ideally you want to have 15% deposit.

Talk to us at Urban Union if you’re looking for your first home. Our properties can be reserved with a small reservation fee and are available at a fixed price in our Perth, Glasgow and Edinburgh developments.

 

2021 – The year of working from home!

Last year was challenging for most of us, but with the vaccine rollout in full force, we could soon start to get back some much-needed normality. One of the changes that many of us have experienced is home working – either full or part time – and it appears that many people will continue to work from home especially as we have all adapted to this way of working. Zoom meetings have replaced in-person meetings and people are able to work longer hours when not having to travel to and from work. Many companies have now embraced the benefits to both themselves and their employees in allowing staff members to work from home either full or part time.

As a result of this change in lifestyle, demand for homes with an extra bedroom are in high demand and many people are looking for ways to create a home office within their home. Recent reports stated that having a home office shed in your garden can boost the value of your home by as much as £12,000.

A place to work

It’s important to set up a quiet dedicated area otherwise you could find it’s a difficult balance trying to cut off from your personal life when in the home.

Think carefully about an area to set aside for home working. Some people work well with the radio or television on and some need complete quiet. If you have space restrictions then look at the space you do have – could you clear an area on your dining table, use a dressing or console table, clear out the under stairs area or even transform your shed? Anywhere could be a possibility as long as it makes you feel comfortable and the space is functional.

Furniture and office equipment

Make sure that you pay attention to a good office chair that is both comfortable and comfortable. You’ll be spending hours sitting on it and you need to take care of your posture to avoid any problems in the future. Look also at where you position your printer, computer screen and anything else you may need. If you have a laptop, consider getting a monitor so that you are looking ahead rather than downwards to avoid putting pressure on your neck and spine. This may help you to calculate the correct height of your desk and chair: https://www.blitzresults.com/gb/ergonomic/. Make sure you also have all the office equipment you need along with suitable storage so that the area can be left clean and tidy.

Give your area some personality

One of the best things about working from home is that you can personalize the space without any restrictions! Use your favourite photographs and pictures, add colourful plants, or go crazy on cushions and colours – there is no office policy other than yours.

Lighting

It’s essential that your space is well-lit to avoid straining your eyes if you are doing anything off-line. Use a good quality lamp and if you have natural light try and maximise this.

Keep it tidy

Tidy work area, tidy mind! Make sure you clear away any cables using the DIY solutions available and make sure all paperwork is tidy and use paper trays to organise your documents. There are also some very small and compact filing cabinets available.

Setting up a home office doesn’t need to be daunting or expensive especially as it could be temporary.

Mortgage Approvals at Highest Level for 13 Years

Mortgage approvals reached their highest level since 2007 with the property market showing no signs of slowing down. According to the Bank of England, there were 105,000 mortgages agreed and approvals were up from 98,300 in October breaking through the 100,000 barrier for the first time in 13 years.

In addition, lenders are continuing to expand on the number of mortgages available for first-time buyers. At present there are 160 deals available whereas in October 2020 there were only 51. In January there were 762 according to Moneyfacts.

The property market is buoyant, and this looks set to continue well into 2021 despite the current lockdown restrictions in place. A combination of the LBTT holiday and people re-evaluation what they want and need from their homes (including space for working from home and better access to green spaces) has resulted in the high level of transactions reported.

There has been a rise in the available number of mortgage products for those with small deposits which demonstrates that lendres are less risk-averse than they were when the market reopened in June 2020.

The increase in availability of mortgages for people borrowing 90% of their home’s value is excellent news for first-time buyers. Although mortgage availability has increased, there are still fewer options for people with only a 5% deposit, with just eight different 95% mortgages currently available. That’s where Help to Buy (Scotland) is an ideal scheme for potential buyers.

Although there is an increase in the number of deals available it is worth noting that the cost is higher with an average interest rate of 3.65% for a two-year fixed rate mortgage, compared with 2.59% a year earlier, despite the Bank of England base rate falling by 0.65% during the period.

Data from Zoopla suggests the current mini housing market boom will continue for some time. Buyer demand was 33% higher in December than it was in the same month of 2019, according to the latest Zoopla House Price Index. There were also record figures for Boxing Day traffic with a 70% surge compared to 61% in December 2019.

If you are considering your first home or are looking for more space, discover our developments at Urban Union. We specialise in the successful delivery of large-scale regeneration projects. Part of Robertson Group, we have a proven and award-winning pedigree in creating new communities across Scotland. We are currently delivering mixed-tenure developments across Glasgow and Edinburgh. The heart of our approach is an unrivalled commitment to creating communities, not simply building new homes. This is achieved by working in close partnership with local authorities, housing associations, community groups and residents.

We are also dedicated to ensuring opportunities for people living in the areas in which it operates, supporting targeted recruitment, training and supply chain opportunities.