Category: Pollokshaws Living

Make your house a home The right amount of style, comfort and convenience within a vibrant community can create a truly inspirational home. One of the great benefits of buying a newly built home is that you have a blank canvas on which to make your mark. There’s no bett read more

Muirton Living Sells Out With Last Home Purchased We are delighted to announce that our award-winning Perth development, Muirton Living, has sold-out. Launched in 2016, Muirton Living – a 101 home, mixed tenure community in Perth – sold-out after its final proper read more

Save Money When Buying or Selling a Home

If you’re considering moving home, whether it’s your first home, you’re looking for more space for a growing family or downsizing, it can be a stressful process. Along with feeling that the whole thing could be daunting, there are lots of potential costs that you will need to save for. However, not all of these are necessary.

Here are some ways you can save money whilst navigating the property ladder:

Buy a fixed price home

When looking for a property that is listed for ‘offers over’ it will either go to a closing date in which case you’ll need to submit your highest and final offer, or you could submit an offer in the hope that it will be accepted. However, this offer will need to be good enough for vendor to accept it and take the property off the market. Either way this will need to be done via a solicitor who will charge for their services. An alternative is to buy a fixed price home – so once you’ve decided you want to buy it and paid a reservation fee, it’s yours!

Consider the energy efficiency

When moving home, it’s a good idea to choose a home with lower running costs. A newer home will have lower utilities bills than an older property.

Selling your home

If you are selling your property, it’s worth negotiating hard on commission and comparing agents. On average, high street agents charge around 1.5%, but will often reduce this to around 1% or even lower if you ask. Just make sure you are using the right agent who has a proven track record.

Remortgaging

If you are selling a home and looking to buy, you may be able to port your current mortgage. However, given the historic rates we have seen over the past couple of years, you could find that by remortgaging you save on your monthly repayments. Talk to a mortgage broker for advice on the best course of action – they will be able to look at the whole of the market including deals you won’t find on the high street.

Engaging a solicitor

It’s important to choose your solicitor wisely, whether buying or selling. When selling a home, your solicitor should be able to save time by carrying out prep work before a buyer is even found. This can really speed things along when a buyer makes an offer. An efficient solicitor can save weeks on the conveyancing process.

DIY removals

Removals firms can be expensive so try and do as much of the moving yourself to cut down on these costs. If you don’t have many belongings you could find that hiring a van is the most economical way to move, otherwise make sure you speak to several firms to get the best price and pack wisely to keep the number of boxes to a minimum. It’s also important to book the removals service as soon as you can in order to get the best price – and moving mid-week can often be cheaper. Finally, make sure you aren’t taking any belongings that you aren’t going to keep – so have a big sort out before you move home as this will also cut down on time and money.

Choose new

By buying a new home, you will be saving money on the cost of any home improvements. With an existing property you may need to spend money on upgrading the kitchen or bathrooms, which could prove to be costly. Buying new means that you move in – and that’s it!

Help to Buy

Are you eligible for the Help to Buy (Scotland) scheme or the First Home Fund? This means that you will only need a 5% deposit!

Take a look at our current developments.

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.

A 2021 Property Boom?

Following an unprecedented level of property transactions in 2020 (£300bn – a 26% increase on 2019) experts are predicting another busy year for the property market.

House prices were at a six year high in December and in December annual growth in property prices accelerated to 7.3% up from 6.5% in November according to the Nationwide House Price Index. The average price of a property is 5.3% higher than it was just before the pandemic in March.

There were fears that the effect of Covid-19 on the economy would cause the property boom to take a downturn in 2021 with falling house prices, but strong growth during the most recent lockdowns has boosted confidence among analysts.

Zoopla expects annual price inflation of around 5% in Q1 of 2021 before slowing to 1% by the end Q4.

The fact that the UK property market has demonstrated resilience during 2020 is encouraging for this year’s outlook, especially as there is light at the end of the tunnel with a vaccination programme underway.

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.

Differences Between the First Home Fund

The First Home Fund closed applications in October last year, but the government has confirmed that applications will re-open early this year. It runs alongside Help to Buy (Scotland). Eligibility for both is subject to lender terms and conditions, but what are the similarities and differences between the two schemes? Here we break it down so you can decide which scheme is right for your circumstances:

Who can apply?

Help to Buy: Open to all first time buyers (including those who have owned a property before) and existing home owners

First Home Fund: Open only to first time buyers who have never previously owned a property.

What contribution do I need to make?

Help to Buy: The government will contribute up to 15% of the purchase price.

First Home Fund: The government will contribute up to £25,000 or 49% share of the purchase price.

What is the minimum deposit required?

Help to Buy: A minimum of 5% deposit is required.

First Home Fund: A minimum of 5% deposit is required.

What type of property can I purchase using the scheme?

Help to Buy: It applies only to new build properties that are built by registered builders.

First Home Fund: This scheme applies to all new build and existing properties.

What is the maximum property price?

Help to Buy: What are the Key Differences Between the First Home Fund and Help to Buy?There is a maximum property price of £200,000

First Home Fund: The maximum house price is unlimited but is subject to lender terms and conditions.

What is the minimum mortgage amount that I will need?

Help to Buy: The mortgage will need to be at least 25% of the purchase price.

First Home Fund: The mortgage will need to be at least 25% of the purchase price.

What is the equity interest?

Help to Buy: There is no interest paid on the additional equity.

First Home Fund: There is no interest paid on the additional equity.

Is there a restriction on the type of mortgage?

Help to Buy: The scheme cannot be used with a buy-to-let mortgage and can only be used for a residential mortgage.

First Home Fund: The scheme cannot be used with a buy-to-let mortgage and can only be used for a residential mortgage.

What is the deadline?

Help to Buy: This scheme ends on 31^st March 2021.

First Home Fund: This scheme ends on the 31^st March 2021 and is limited to a budget of 150 million pounds.

If you are looking to purchase a first or even second home, you could use one of these schemes. Talk to us at Urban Union about the properties we currently have available in Edinburgh and Glasgow. Your dream of owning a property could become a reality! See more.

Buying Your First Home

At present lenders are regularly changing the availability of their mortgage products, leading to confusion for those wanting to buy a new home, in particular first time buyers.

Today’s property market still remains challenging given the current lockdown restrictions. In addition, it is unlikely that many first-time buyers will benefit from the increase in the LBTT threshold, as first-time buyers were already exempt on properties valued to a maximum of £145,000.

The combination of the LBTT holiday and highly competitive mortgage rates on lower LTV deals has been designed to get the housing market moving again and the result has been a rise in house prices in the last month here in Scotland.

Despite the challenging market there has been a record number of mortgage approved in recent months. There are still several options available to first-time buyers that will make purchasing a home more affordable.

Guarantor Mortgages

This type of mortgage has been designed for those who have a poor credit rating or do not have access to the deposit required to obtain a mortgage. There are still several guarantor mortgages currently available in the market. If you’re interested in a guarantor mortgage you will need a close relative to be willing to be liable for the entire mortgage should you default on your repayments. Your guarantor will be required to put up collateral by way of savings or their own home as part of ‘springboard’ deals. It’s worth noting that guarantor mortgages are usually a higher rate than a standard residential mortgage. Due to the small number of deals available it’s advisable to talk to an independent mortgage advisor.

Help to Buy (Scotland)

The Help to Buy (Scotland) scheme enables those who want to buy a property to do so with just a 5% deposit. Help to Buy (Scotland): Affordable New Build and Smaller Developers Schemes have now been extended to March 2022 with an additional £55 million provided in 2021/22. This additional funding means that the government can help another 2,000 households to buy new-build homes.

Under the scheme buyers can borrow an equity loan from the Government up to an additional 20% of the property’s value meaning they can buy with a mortgage that covers 75% of the house price.

Demand is higher in areas where property is cheaper – and during the lockdown developers have been able to continue to sell property as they were already well-adapted to using virtual viewings and CGI imagery, and reservations could still be taken. This has resulted in a greater degree of activity compared to existing homes that could not take viewings or go on the market.

First Home Fund

The First Home Fund launched in December last year to help first-time buyers purchase a property.

It is a shared equity scheme whereby the Scottish Government will have an equity share in the property, but you will own the property outright. You will normally repay the government’s share when you sell your home, but you can also choose to pay this off earlier.

The scheme is open to anyone who does not own, or has previously owned, a property in Scotland or anywhere else in the world. You will need a 5% deposit of the purchase price (subject to individual lender requirements) and your mortgage must be at least 25% of the purchase price.

This scheme allows those who want to get onto the property ladder to split the cost of purchasing the property with the Scottish Government and funding your share via a smaller deposit than otherwise would be required, and a mortgage.

You won’t need to pay monthly instalments or interest to the Scottish Government for their contribution but will pay it back when you sell your home. While you own the property, you will have full ownership rights and will hold the full title.

You cannot apply for this scheme if you are a cash buyer or if you own a property in part or full or have previously owned a property as a sole or joint owner.

The maximum contribution from the Scottish Government is £25,000 or 49% of the property valuation figure or purchase price (whichever is lower). You can submit a joint application and the property must be the sole residence of all applicants. In addition, you cannot apply to any other Scottish Government shared equity schemes such as Help to Buy Scotland while applying for this scheme. You must withdraw this if you have an existing application.

Shared ownership

Shared ownership enables you to buy a share of a home instead of having to fund its entire cost. You can buy a 25%, 50% or 75% share of a home with the remaining share is owned by a housing association. Because the housing association owns a share of your home you don’t own it outright but will pay an Occupancy Charge to the housing association.

Shared equity

If you cannot afford the full price of a home for sale in the open market you might be able to get help through the Open Market Share Equity (OMSE) scheme. This is available across Scotland to first-time buyers and priority groups including those over 60, social renters, disabled people, members of the armed forces, veterans and widows or widowers of those who have served.

You’ll pay for the biggest share which is usually between 60% and 90% of the home’s cost. The Scottish Government will hold the remaining share under a shared equity agreement which it will enter into with you. You’ll have complete title and hold the deeds but the mortgage will have a security on the home to protect the Government’s share. If you sell the home, the Scottish Government will get a share of the money.

It is important to consult with an Independent Financial Adviser before applying to the scheme as they can help you to decide which is the most appropriate scheme for your circumstances.

The Help to Buy and First Home Fund schemes can be used to purchase one of the many properties available from Urban Union across all our developments. Contact us to find out more about current and future availability.

Find out the key differences between Help to Buy (Scotland) and the First Home Fund: https://www.urbanunionltd.co.uk/2020/02/18/differences-between-the-first-home-fund/

Britain’s Greenest Year on Record

Last year is set to become our greenest year on record due to the pandemic causing a reduce in the demand for power. Although it was a challenging year for us, the planet appears to have reacted positively to the slowdown in activity.

The carbon intensity of electricity is an indicator of how much pollution electricity produces. According the data from the National Grid, the electricity system’s carbon intensity from the start of the year up to November was lower than has ever previously been recorded. By December, an average of 181g of carbon dioxide was emitted for every kilowatt-hour of electricity. In contrast, 2019 was 215g.e

A combination of solar and wind power, environmental legislation and an introduction of the carbon tax has helped to reduce pollution in the UK. As we harness the growth of renewable power resources with a reduced reliance on coal, the National Grid predicts that the system will be carbon free by 2025.

Britain’s renewable energy capacity has risen over the last few years producing an increasing amount of gigawatts of power. The slowdown in human activity has had a number of positive effects on the environment with reduced air pollution.

Energy efficient properties

By purchasing a new property, you are buying a home that is extremely energy efficient. New homes are on average 33% more energy-efficient than existing homes and produce 66% less CO2 to run.

The Government aims to promote energy efficient housing with the planning white paper stating that from 2025, new homes are expected to produce 75-80% lower CO2 emissions compared to current levels. Homes delivered using modern methods of construction tend to have higher energy efficiency ratings and use up to 30% less energy to heat.

At Urban Union our properties are highly energy efficient saving money on your monthly bills. Take a look at our developments.

Over the last year we have placed more importance on technology to keep in touch with our loved ones as we haven’t been able to see them face-to-face. There are several social apps that enable us to keep in touch with loved ones without having to see them in person. Using social apps is a great way to stay connected with friends and family. Where we previously went for dinner or drinks over the festive period, we are now meeting up online instead, no matter where you live.

Here are some of the best social apps to use this Christmas:

WhatsApp video

WhatsApp not only enables you to speak to your friends, it’s now also possible to see them anywhere at any time. All you need to do is download the app from your smartphone’s app store, sync your phone number and click on the symbol of the video recorder in the top right hand corner for video calling. You can even download WhatsApp Desktop for your computer to make it easier to use as you won’t need to hold the phone.

Facebook messenger

If you can’t get to grips with WhatsApp you can keep in contact with friends and family using Facebook Messenger. Like WhatsApp, you can video call friends and family either one-on-one or as part of a larger group.

Netflix

Netflix have launched an extension designed to help you stay in contact with friends and family so you can share your screen with friends and watch movies at the same time! You can even chat while you watch.

Here’s how to install:

Find Netflix Party on the Chrome Web Store and click “Add to Chrome” to finish installing Netflix Party.
Go to Netflix’s and choose a movie or show to start playing.
Click on the red “NP” icon located next to the address bar. Then click “Start Party” to share the party URL to invite friends.
If you’re joining a watch party click on the party URL, which will redirect to Netflix’s website. Then click on the “NP” button next to the address bar, and you should automatically join.

Skype

Why not chat or video call on Skype? You can do this via your smartphone, smart TV or laptop. Simply set up a time with loved ones and why not even make it a dinner date? You could all eat at the same time whilst chatting.

Xbox Live and Playstation Plus

Xbox live and Playstation Plus makes it easy to stay in touch with friends and family while sharing your love for gaming. Simply pick up a headset, connect online and chat with your friends whilst you play a game together! There are hundreds to choose from, just go to the Microsoft or Nintendo store.

Houseparty and Zoom

Houseparty and Zoom are similar to Skype but you can chat to up to eight people at a time. You can arrange a dinner party, date night, movie night, quiz night or even a cook off! Simply download the app on your laptop or phone and set up a meeting then send invites to friends you want to take part. You can upgrade the subscription from free to paid so that you can have more functionality such as break off chats and longer meeting times.

Instagram

Instagram Live can be a great way to keep in contact with friends and family – you could have a dance party, host tutorials, watch music performances and more.

Strava

Strava allows you to record your exercise and keep in touch with fitness groups – share your progress with others to stay motivated.

FaceTime

A classic and one of the easiest ways to stay in touch! You hold video chats via your phone or laptop and see how your family are getting on during the lockdown.

What you need to know about applying for a mortgage this year

During the restrictions we have been placed under since the lockdown was lifted in June, one thing that has remained open is the property market. What’s more, the UK has seen an unprecedented boom in sales with demand outstripping supply.

As the housing market continues to be exceptionally busy and the LBTT deadline approaches in March 2021, you may be wondering if and how the mortgage market may have been affected at this time. Have lenders changed their criteria? Do you need a larger deposit? How long will an application now take? Here we look at the answers to some of the most common questions that house buyers are asking:

What mortgages are currently available?

Over the last few months, many lenders have restricted their products and withdrawn the high LTV (Loan to Value) mortgages. Before the pandemic, the banks were starting to bring in 95% and even 100% mortgages, but along with lockdown came a stricter lending criteria as affordability became an issue for many. However, it’s worth noting that some lenders have ‘flash’ offers so talk to an independent mortgage advisor who will have their finger on the pulse and be aware of who is offering which deals and what you are eligible for.

Can I use Help to Buy or the First Home Fund?

Both of these schemes are operating as normal and require just a 5% deposit when used – however, the First Home Fund has temporarily put a hold on applications and will re-open early next year for properties purchased from March 31^st onwards. Help to Buy (Scotland) is still running as normal and you can apply when buying an Urban Union property (terms and conditions apply).

Lending

There have been some changes in lending this year, but mortgage approvals are currently the highest they’ve been since 2007. This is a result of the demand for new homes since March due to the LBTT holiday (no LBTT is payable up to £250,000 in Scotland and £500,000 in England) and a change in buyer’s priorities with more home working, demand for outside space and less importance on being close to the city and transport links. The most significant change is the amount of money that banks are lending – instead of the high LTV deals, more common today are the 85% deals. They have also slightly changed the affordability criteria with buyers in certain industries (such as travel or hospitality) required to give more evidence of earnings and job security. They have also started to recalculate earnings and you may have issues if your wages are being paid by the furlough scheme. Applications are looked at on an individual basis so talk to a mortgage advisor to find out what yoru options are. You can improve your chances by saving for a larger deposit, reducing your debts before you apply, improving your credit rating and looking at other ways to finance a new home – for example help from parents or Help to Buy.

Mortgage application times

As the market is so busy and many offices and banks have been temporarily shut, there is a backlog and so an application could take slightly longer to be processed. The mortgage is only one part of the buying process and at present you also need to allow up to 3 months for conveyancing. You can speed things up by getting a Mortgage in Principle before you purchase a home.

Buying new

Buying new can save a lot of time – once you have paid a reservation fee (which will be offset on completion) the property is yours and the process is much quicker. There’s no chain, no negotiating and you don’t have to rely on your seller’s timings for when they can move out.

Talk to us about how you can purchase a new build home.