Homebuyers: Want Your Saturdays Back? Speak to a Property Buying Agent There is a common mistake made by many a homebuyer that once they have registered their details with an estate agent, that estate agent will act in the buyer’s interests to find them their new home. This is a fallacy perpetuated by estate agents, as having a large database of potential buyers attracts sellers to list their properties with them. And there is the rub: estate agents are retained by the seller and they act exclusively in the best interests of sellers. In fact, they are legally obliged to do so. Whilst an estate agent will happily register your details on their database and may even send you emails containing property details, they are not acting in your (the buyer) best interests. They are merely trying to generate interest in the properties of their retained clients (the seller) in order to achieve the highest price possible for those clients – acting in the seller’s best interest, as required under their agency agreement. So who looks after the buyer’s best interests? Well, that would be a buying agent. Buying agents act exclusively for buyers and use their network of [...]
£60,000 earnings needed to buy a property in Bristol! Hometrack released its latest housing report this week. The report states that the average property price in Bristol is now £282,500. That is a 3.2% increase year on year from 2017 and 42% higher than the pre-market crash year of 2007. Only Oxford (£423,400), Cambridge (431,600) and London (£485,300) have higher average property prices. The cost of housing continues to outgrow earnings levels. This is likely due to low mortgage rates resulting in affordability for higher loans. At Fox Davidson we have seen first-hand that an increase in the bank of England base rate to 0.75% has not affected the rates lenders are offering clients. In September 2017 we secured a 2 year fixed rate with Virgin money at 2.13%. This month the same bank is offering 2 years fixed rate at 90% at just 1.86%. lenders have clearly absorbed the rate increase and therefore the increased cost of funds. Lenders are doing this to keep top of best buy tables as the mortgage market is fiercely competitive. Furthermore, most lenders now offer free property valuations and cash back for purchase mortgages. The report also focused on the income a first-time [...]
Changes to HMO Rules, Landlords Take Note! Landlords letting on a shared accommodation basis take note! Changes to the HMO licencing laws are about to take effect. From 1st October any landlord letting a home to 5 or more tenants consisting of 2 or more households will need an HMO licence. This is a change from the current licensing (brought in during 2006) which only requires houses which are 3 storeys or more to be licenced. Properties with 1 or 2 storeys let to 5 or more tenants will need a licence. It will also create a more level playing field for Local Councils, giving them more control to prosecute the minority of landlords who rent out sub-standard overcrowded homes. Housing Minister heather Wheeler said: “Everyone deserves a decent and safe place to live”. “Todays new guidance for landlords will further protect private renters against bad and overcrowded conditions and poor management practice” The reason for HMO licencing is to ensure that properties which can are more crowded have adequate fire and health and safety standards. Many HMO properties were not originally intended for multiple occupancy and the risk of fire is therefore greater. The Government has also issued [...]
Development Finance in Somerset, Worle.THE BRIEF: OBJECTIVES/PROBLEMS/CHALLENGES:An existing client and owner of a major building firm in Weston-Super-Mare asked Fox Davidson Commercial Finance to help them finance a site in Somerset. Although our clients had previously built many residential and commercial properties they not yet needed to use development finance.The plot had planning to change it from a single unit into 5 houses. It was currently derelict and in need of urgent development as it had become an eyesore.THE WORK:When speaking with a client about a development we will look at all aspects of the deal. The client and their experience, the development, the timescales and ask about the professional contractors involved. We will gather all the necessary information and then take the lending to the right development finance company for that development. Too many brokers band about deals to development lenders up and down the country which is frankly a waste of everyone’s time. A good broker worth their salt will know which development lender is right for each deal and take the loan to them only. We had terms agreed with a reputable development finance company within 48 hours. THE RESULT:The financials agreed were as follows:Loan £900,000 GDV £1,600,000A rate of [...]
Pied-A-Terre Mortgage for Barrister Moving From Bristol to Yorkshire. THE BRIEF: OBJECTIVES/PROBLEMS/CHALLENGES: A Barrister working out of a Bristol chambers approached Fox Davidson due to our expertise working with professionals. We were asked to finance a second main residence in Bristol before the existing home was sold and the client relocated to Yorkshire. We would need a lender willing to lend on a second main residence in the same City which is usually an issue for lenders as an application for a pied-a-terre mortgage usually has to be in a separate City. The lending requirement was for an interest only pied-a-terre mortgage using the sale of the subject property and/or the existing main residence which was on the market in anticipation of the move to Yorkshire. THE WORK: The key to financing a pied-a-terre mortgage (second home mortgage) is plausibility and affordability. We need to demonstrate to the lender why a second home is required and show that the client has the affordability to pay both mortgages and both sets of council tax and utility bills. Lenders will assess affordability using the existing mortgage and bills as a monthly outgoing. We are a whole of market broker and having [...]
Offshore Trust Finance on Belgravia Property. THE BRIEF: OBJECTIVES/PROBLEMS/CHALLENGES: A professional introducer in London approached us to finance a £10 Million loan on a property in Belgravia worth upwards of £100 Million. The complexity was that the property was owned in the name of an offshore trust in Jersey and that the funds were to be placed into an investment for the beneficiary of the trust. The beneficiary occupied the property. To complicate matters the beneficiary of the offshore trust was an older applicant and would fall foul of most lenders maximum age restrictions. The introducer had already tried several banks he knew of and they had declined to lend. THE WORK: From the initial enquiry it was obvious that this was a private banking solution rather than anything the high street could offer. The funds were not being used right away and would instead be invested and so it made sense for the same private bank to lend and to invest the funds for the client. The introducer had approached the clients own private bank and one other he had a relationship with and they had both declined to lend. We knew that we would need a [...]
“ I would not hesitate to recommend Fox Davidson to family and friends. I am a first time buyer and therefore the house buying process was a little daunting to start with but I was kept fully up to date throughout the whole process to the point where I would receive an update email at least twice a week.
I was also extremely pleased to find that as well as assisting with the mortgage I was also being provided assistance with home and life insurance. The service I have been provided is definitely good value for money and I am very grateful to everyone at Fox Davidson who has helped me.“
Miss R Power , Bristol
“ Having been let down by another mortgage broker (who seemed to only want to assist with a mortgage if we took other products too) I stumbled across Fox Davidson. As I am based half in London and half in Bristol, they seemed the perfect fit. Having connected with them and receiving prompt, relevant and helpful advice at the outset of our property search, I had no hesitation in coming back for the mortgage itself.
The mortgage application process was rendered painless and they bent over backwards to help with the sale. They also were extremely helpful and supportive when our first purchase collapsed, also managing to make mortgage application #2 equally as smooth. Thank you so much! “
K Gibson, London
“ After using Fox Davidson for my first buy to let purchase I didn’t hesitate to get in touch again when the time came to buy a second property. Being an expat living and working in Thailand I had found through my own research that the options available to me would be limited, however I needn’t have worried. Fox Davidson found me a mortgage that suited my circumstances perfectly. They have helped to make what could have been a complicated process very simple and stress free.
Great people, Great knowledge, Great service. Thank you Fox Davidson. “