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18-Jan-08
A member of the Bank of England's Monetary Policy Committee (MPC) has hinted that he supports a cut to the base rate of interest sooner rather than later.Deputy governor of the Bank and MPC member Sir John Gieve hinted at his support for a reduction durin...
Market is stronger than it was in the 90s
18-Jan-08
We are not about to see a property price crash on the scale seen in the 1990s, according to one expert.CB Richard Ellis believes that prices will actually rise by around three per cent in 2008, reports the Telegraph.The firm is confident that prices will ...
Jobs stats won't postpone rate cut
18-Jan-08
The latest employment figures reveal that more people got themselves jobs in the three months to November 2007, but future projections point to less healthy times ahead.With this in mind, Dr John Philpott, chief economist at the Chartered Institute of Per...
Landlords receive tax returns reminder
17-Jan-08
People who own investment properties in London and elsewhere in the UK need to get their self-assessment tax returns in before the January 31st deadline.HM Revenue & Customs (HMRC) has warned landlords and other self-employed people not to miss the da...
London airport expansion will boost house prices
17-Jan-08
The value of properties close to London City Airport may increase as the hub expands.In the last 12 months, passenger numbers at the airport have increased by 23 per cent.However, although many people may see this as a negative thing for local homeowners,...
Brits overspend on home improvements
17-Jan-08
A quarter of Britons who carry out home improvement work underestimate how much the projects will cost.That is according to Halifax, which reveals that around one million people undervalue the expenses involved by approximately £4,500.It means that B...
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Print this articleBuy-to-let market 'booming'
16-Jan-08
Falling consumer confidence in the residential market has led to a large hike in buy-to-let mortgages, is has emerged.
Figures released by broker Hamptons Mortgages this week revealed a 23 per cent rise in the number of buy-to-let products purchased during 2007.
Amid the effects of the credit crunch and a tightening of UK consumers' finances during November and December, residential mortgage deals fell by around 17 per cent, the study found.
Buy-to-let mortgages also accounted for 39.53 per cent of loans taken out between December 2006 and the same month last year, the broker revealed.
The switch in market trends signals the points in 2007 where consumer confidence "took a knock", commented Jonathon Cornwell, managing director at Hamptons Mortgages.
"Most notably [this occurred] after the credit crisis when the proportion of residential mortgages fell by nearly 11 per cent in October 2007, and also in December when borrowers shied away from purchasing due to a cooling housing market," he added.
The Bank of England cut interest rates from 5.75 per cent to 5.5 per cent in December and, with further reductions expected by some experts over the coming months, borrowers may consider tracker mortgages.
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