Welcome to your March Newsletter!

Are there benefits to overpaying a mortgage?

If you have streamlined your spending and examined where and how you can save, you might find that you have a little leftover. Thought of overpaying your mortgage? Paying more of your mortgage off, means you pay less interest. Heating, council tax, and gas bills have all increased. In some ways there is not much you can do to reduce the price of these things yourself. With interest rates higher than they have been for years there has never been a better time to get one back on the system by saving money on your mortgage. We look at the best ways to do so and crunch some numbers to show how a few extra pounds each month can shorten the term of your mortgage significantly.

There are essentially two ways to overpay your mortgage, in a lump sum or by adjusting your monthly payment.

Mortgage overpayment calculator

Most high street banks have mortgage overpayment calculators which will help you see how much you could save.

Overpay in lump sums

It could be that you get a good interest rate on a savings account. You can save an amount you are comfortable with and feel secure in case you need access to emergency funds. Then pay off so much of your mortgage in lump sums, always leaving a certain amount in your savings account.

Increase your monthly payment

Many people choose to increase their monthly payments.If you have taken out a mortgage with a term of 25 years for £150,000 at an interest rate of 4% then here are some inspiring numbers!

Paying an extra £10 per month could save over £2000 on interest and pay your mortgage off 6 months early.*

If you increased your payment by £100 then you could reduce the term of your mortgage by nearly four and half years, with a saving in interest paid of £17,000!

Penalties

It is essential that you check the terms of your mortgage with your mortgage provider. There may be a penalty cost incurred if you overpay by a certain amount. That said you will still be able to overpay more than you might expect before being punished! For example, most mortgage providers will allow you to pay up to 10% of the balance before being charged for fixed-interest rate mortgages. One advantage of paying a variable rate mortgage is that typically you can pay off as much as you like.

A better deal

If you have been overpaying your mortgage and it’s time to get a new deal, you may find that you get a better interest rate because your loan-to-value (LTV) ratio is now lower. Typically, the more equity in your home the less interest you will pay. Paying off more of your mortgage can save you on interest in more ways than one!

Do what’s right for you

Perhaps you are struggling and this is something you will look at doing in the future. It may be that you have a grand plan and aim to pay off your mortgage in the next seven years. Whichever you decide to do, paying off a little or a lot has a big impact!

It’s more than a house it’s the feeling of being home. Browse our properties.

*moneysavingexpert

Will house prices decline this year?

What does it really mean when you read a headline which mentions falling house prices? We hear this phrase so often that we are led to believe it! The media constantly churns out facts and figures to scare us all and warn of looming doom!

For most people, buying a house is a long-term investment and if house prices rise or fall it’s always best not to focus on the headlines, instead take a step back and put things in perspective.

If we look at last year, it’s true that houses price increases dipped due to interest rates rising and the impact of the minibudget. In 2022 house prices grew by 2.8% over all for the year, falling from a growth rate of 4.4% according to the Nationwide house price index.

Yet according to the office for National Statistics average UK prices increased by 12.6% over the year to October 2022. So, it depends on who you ask! Not to mention regional differences and property type - often houses increase in value more rapidly than flats.

Predictions

Zoopla predicts a 5% fall in house prices, while Lloyds bank give a higher figure of 9%. Many analysts agree house prices to fall for the next two years but rise again in 2025. Perhaps more optimistically the housing market could simply level out, with smaller drops in house prices. There is still a shortage of houses and therefore this will stabilise the market. The housing market is simply returning to a pre-pandemic norm with more realistic interest rates. The good news is without rapidly rising prices, there is more long-term stability.

The good news

Ultimately if you are selling, the value of your home will have gone up considerably over the past years so if it falls a little you have still gained. If you are about to purchase your first property and still gathering the deposit and you know it may take a little longer, at least house prices are not rocketing which gives you a little more time. And when you are in a position to make an offer, you may find that you have a lot more wriggle room in terms of making a lower offer and saving some money.

Long term

Buying a house is a long-term investment for most of us and even large drops in value will not create big gains or losses.

For example, if you buy a house for £200,000, typically the deposit is 10%, £20,000.

If you plan is to wait thinking house prices will drop by 10% you have saved £2000, in terms of a deposit. In a long-term investment this is not a significant amount of money.

And if the worst happens and you buy a house tomorrow and house prices suddenly drop by 10% unless you are planning on selling within the next 2 years, with house prices set to rise again in 2025 then again realistically you have lost £2000, temporarily before gaining again.

In both the above scenarios, in the long term, you will still gain.

Conclusion

The future looks good, yet even if there is sudden drop in the grand scheme of things, it’s not such bad thing! In fact, does it even matter? What’s important is finding a house you can call home and cherish the memories you make in it.

CTA - Looking your first home or your forever home? Browse our properties.

*TheTimes

14th April 2023, Garden City AcademySuperhero Academy

The Multi-Activity Day is a fun day with a wide variety of activities for your children to enjoy from fun sports such as Dodgeball, Archery and Sumo Wrestling to Swimming (certain venues only) and Nerf Wars.

Click here to read 14th April 2023, Garden City AcademySuperhero Academy.

Energy-efficient homes are in big demand - Here’s how you can improve yours

Unlike many other things in your life, when it comes to your home, there is a lot you can do to save on energy costs. Food costs are spiralling, and while you can grow some things, it’s most likely you can’t grow all you want. The price of cars has also gone up, as have the prices of many other consumables and raw materials, and yet again, there is not much you can do about it.

Many of us lament the cost-of-living crisis and feel helpless in the face of such adversity. So here are some quick fixes and big improvements you can undertake to increase the energy efficiency of your home while at the same time adding to its value.

Quick fixes

Install a smart meter: this can be supplied by your energy provider, so you can see exactly how much energy you use.
Loft insulation: this is a simple way to keep heat from escaping your home and can save you a lot of money on heating bills. It is something you could do yourself with the right protective equipment, but don’t fall through the roof! Perhaps you don’t feel up to it after all? Don’t worry; there are many specialists who can do this for you.
Collect rainwater for the garden: by collecting rainwater in your garden in a butt, a barrel or an all-singing, all-dancing water tank complete with a pump. Whichever you choose, you are making your garden greener by harvesting rainwater!
Low-flow showerhead: you can buy one of these for less than £20 and install it in minutes by simply unscrewing your old showerhead and replacing it. Being more efficient could mean you use your boiler a little less, too.
Energy-efficient light bulbs: they might be a little more expensive, but they will save up to 80% on energy use and last up to ten years!

Big improvements

Install a new boiler: improve your energy performance certificate with a new boiler. Having an old boiler will put buyers off, and the value of your home will increase sufficiently to cover the costs of a new boiler.
Air source heat pump: with government grants making this option more affordable, heat pumps are becoming more popular. British Gas offers a complete fitting service.
Triple-glazed windows: this will improve your home's energy rating further. Your home loses a lot of energy as heat escapes through the windows. When they are clean, windows allow a lot of heat from the sun to enter. Triple-glazed windows trap that heat more efficiently, saving you money on the energy you use to heat your home.
Photovoltaic solar panels: as solar panels become more popular, we are all becoming more aware of them. Less well-known are photovoltaic solar panels, which work even when it’s cloudy—perfect for the UK! Did you know you could sell the electricity they generate back to your local energy supplier, potentially making them pay for themselves?
Hot water solar panels: placed on the roof like traditional solar panels, they heat the water for your shower, bath, and kitchen sink!
Install a wind turbine: we see them dotted all over the countryside, but perhaps surprisingly, you can buy smaller versions for your home that will create enough electricity to run your entire home.

Find a good deal

Many of these quick fixes and bigger home improvements are eligible for government assistance depending on different criteria, and there are some good deals to be had with energy suppliers and local businesses, so it’s always worth a look online to check out the latest deals.

Looking to move to a more energy-efficient home? Want to know how much value you have added by improving the energy efficiency of your home? Book a valuation.

Spring 2023 promises more choice for the housing market

There is nothing quite like spring, with thawing winter frosts heralding the imminent arrival of summer and longer evenings. 2023 will allow you to drink all this in and enjoy these inspirational moments all the more. The same can be said of your property search. With houses no longer selling like there’s no tomorrow, unlike the rather uncomfortable rush of the past couple of years. You can finally breathe, take a little time, and find the home you love.

A little more housing stock means house prices are not spiralling

Be in no doubt: there is still a housing drought in the UK property market, helping keep prices buoyant. Demand still far outweighs supply. However, with stocks replenishing a little as the market calms so do house prices. You no longer have to race to the first possible viewing to compete with other buyers and make offers over the asking price. The result is that house prices are not spiralling too quickly. Instead, house-buying conditions are more settled and compatible with a secure future.

Quality time spent with your agent and your potential new home

Sometimes too much choice makes it harder to make up your mind! Have you ever found yourself wishing you could have the kitchen from your first viewing in the location or with the garden from another viewing? The guidance, inspiration, and seasoned yet informed input of a good agent will help your vision become an adventure that surpasses your expectations. Reality is often more beautiful and awe-inspiring than your dreams, and you could end up with a far better home than you ever imagined.

More choice gives you more inspiration

Inspiration and choice go hand in hand. View and explore the feelings inspired by other homes. Physical viewings will yield to your imagination myriad ideas to help you truly understand what you are looking for. In many ways your new home picks you, and the more homes you view the greater the chances of finding your true home destiny.

Live the house dream

Perhaps one of the greatest incarnations of a dream is buying and moving into the home you have wanted for so long. You get live inside your vision. When this happens, the feeling of elation is unique and unforgettable. The house you choose will be the place to witness so many happy memories while protecting you from the elements and challenges of the world outside. You don’t want to rush this big decision, and now you are in a good place to make the right choices.

Browse our choice of properties and help us to help you find your home.

8 tenant and landlord trends for 2023

There is a lot going on in the 2023 letting market for both landlords and tenants. It’s important to be tuned in to what’s going on, no matter which side of the fence you are standing on. While demand for rented homes is high and ever-increasing, tenants are now more protected than ever. The mutually beneficial landlord-tenant relationship is becoming more structured. This has some significant advantages for both parties in what is becoming a more and more long-term relationship.

Increase in demand

Demand is increasing all the time for rented property, which is good news for landlords but perhaps a little frustrating when you are seeking a new place to call home. Enlisting the help of a good agent will help a great deal and save much time.

Tenants are renting for longer

Fewer first-time buyers due to the challenges of scraping together a deposit amid the cost-of-living crisis mean tenants are renting for longer. This is good for planning and investing in your future property plans, whether you are a landlord or tenant.

Some landlords are exiting the rental sector, creating new opportunities

It’s not easy for some landlords, new legislation and increasing costs, some are choosing to retire and enjoy life. This creates more opportunities for new landlords who invest in energy-efficient, modern homes, providing great places for tenants to live.

There are more older tenants

One of the reasons there is more demand for rented accommodation is because now more mature tenants rent than ever before, whereas the perception stemming from the past is that mainly younger people rent.

Tenants are paying more for energy-efficient homes

Greener homes are in demand. Landlords have a deadline of 2025 to meet the Energy Performance Certificate of C for newly let properties and until 2028 for existing let properties. More energy-efficient homes may cost a little more to rent but will save tenants on household bills.

Capital Gains Tax changes (CGT) for landlords

For the tax year 2023-2024, the tax-free allowance for Capital Gains Tax will be reduced from £12,300 to £6,000, and for the tax year 2024-2025, it will be fixed at £3,000. Relatively speaking, this is not a massive increase as it is based on a tax-free allowance.

More landlords are creating limited companies

With most landlords already choosing to form limited companies due to limited personal liability advantages, the number of landlords choosing this route will increase further as the rental market becomes more business oriented.

Standards are getting higher

As landlords are forced to upgrade energy efficiency and modernise their properties, the good news for them is that tenants are more content and likely to rent for longer, assuring landlords’ investments. Tenants get to enjoy modern, on-trend, energy-efficient, tech-friendly homes without making big capital investments. Renting is becoming an increasingly enticing prospect, and the future for tenants and landlords looks exciting.

Need a place to rent or looking for a buy-to-let investment? Get in touch.

Investing in property? Here are 10 top tips!

Investing in property can be highly lucrative, and the best way to enjoy it and make it as profitable as possible is to know your stuff. Like so much in life, there is an element of luck involved, and to a certain degree, you make your own luck. That said, if you like to err on the side of caution, investing in property can give you a lot of security. There is also vast scope for creativity; whichever approach you take, do it your own way.

Decide

Sometimes the biggest obstacle to doing anything is simply deciding what you are going to do! In the world of property investment, you are spoiled for choice, and each property offers unique opportunities. So before you make up your mind, consider these tips. Then remember the golden rule: always leave a bit of space for manoeuvring in case your plans change!

Buy-to-let or buy-to-sell?

Do you want to be a property developer or a landlord? There is a constant stream of homes arriving on the market that need modernising or updating. Once completed, who says you can’t do both? Let your refurbished property for a few years, then sell it for a profit!

Get to know the market

Ideally, try to buy in an up-and-coming area. The scope for growth in value is greater. This does not mean you have to find an amazingly exclusive area enjoying mega growth. Often, an area that is moving forward and steadily improving is just the ticket when finding an affordable property. Spend a little time getting to know the areas you are considering investing in.

Have a plan

Planning is a good way to keep you on the right road. Make lists and make notes for moving, refurbishments, and costing, include calculations for rental yields and a list of legal requirements, and tick each step off one by one as there is a lot to remember.

Familiarize yourself with the law

Certain safety standards must be met; these can include smoke alarms, gas certificates, portable appliance testing, an Energy Performance Certificate, and building control certificates for structural alterations. If you let your property, you must conduct Right to Rent checks as a landlord.

Insurance

If you let your property, this is a no-brainer. There are so many policies you can opt for, from malicious damage by tenants to loss of rental income. Make sure any tradespeople working on your property have the correct insurance.

Building contractors

Finding the right tradespeople to create your property vision can mean the difference between making a good profit and losing money because they don't finish on time.

Budget

If you plan to let your property, calculate the rental yield, which will help you calculate your return on investment (ROI). There are many rental yield calculators available online. If you are developing a property, create a spreadsheet or use a property development budget template. Always leave a little aside for the unexpected.

Make the most of your property’s space

Renting or selling make the most of the space you have. More rooms mean more rent or a higher selling price. Have you thought of converting a modest-sized home into flats?

Stay on-trend

When you decide to short-term let, flip, or buy to long-term let, extend, let holiday homes, convert, refurbish, or invest in green, professional, or student sectors, stay clued in to everything from interior decor (keep things neutral and simple) to changes in the law and the latest property market trends.

Are you looking for a fully managed lettings service to protect and grow your property investment? Or are you looking for a great investment opportunity? Get in touch.

The Weatherley Centre Ltd Saturday 1st April, 2023Castle Comedy Biggleswade - The BIG April Show

The BIG April Show at the Weatherley Centre will feature 3 headline quality acts and be the ultimate comedy night out! Doors 7.00pm Show 8.00pm Finish...

Click here to read The Weatherley Centre Ltd Saturday 1st April, 2023Castle Comedy Biggleswade - The BIG April Show.