An estimated third of employees spend at least some of their week working from home with high speed broadband rising up the criteria list for new house buyers. Evidence suggests that broadband speeds could affect the price that buyers end up paying for their next move.
An analysis of average house prices and broadband download speeds by local authority reveals that buyers spend, on average, 17% more for properties in areas with superfast broadband compared to areas where average speeds are less than 25 Mbps.
Some of this will be related to where broadband providers have historically focused their investment, ie, in more affluent areas, but with the major providers increasing their coverage, this effect will become more diluted. Indeed, the Government has committed to provide superfast broadband (at least 24Mbps) to at least 95% of UK premises.
There are a myriad of factors that affect local property prices but the influence of broadband speeds should not be underestimated with its importance to buyers set to continue to increase.
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After months of hard work, our new website finally went live over the weekend and is looking fantastic! Why not have a good look around and see what amazing new features and information are included.
Our new banner has arrived today ready for tonight, and it looks great!! We are proudly sponsoring the Pink Wig event which is part of Falmouth Week and raises funds for vital research projects, the best care for breast cancer patients in Cornwall and a safer future for the next generation.
Until recently, financial commentators had predicted that the UK was likely to see an increase in the Bank of England Base Rate this year. A combination of factors however (including weaker economic growth and some turbulent activity in the stock market) has resulted in a re-evaluation of the forecast, and expectations for the first hike have now been pushed back out.
This has provided some scope for fixed rate mortgages to come down a little further. For those that feel rates will stay low, or are looking for a greater degree of flexibility, it could also lead to more interest in tracker mortgages.
A tracker mortgage is a type of variable rate that follow the movements of another rate (usually the Bank of England Base Rate), typically for an initial period of 2-3 years, or even for the lifetime of the mortgage. The variable nature of the payable interest rate also means that monthly payments can go up and down, so it is not suitable for everyone.
Some analysts have even raised the question of a potential cut in the Bank of England Base Rate, but over recent years several lenders have applied a collar to their variable deals, so borrowers need to be aware that their payments might not fall if rates do come down any further.
Our client contacted the mortgage service for the Guild of Professional Estate Agents looking for advice when purchasing a new family home. Feeling that interest rates were unlikely to increase significantly over the next couple of years, but comfortable that he could afford the monthly payments if they did begin to rise, the client was interested in the most cost-effective tracker mortgage.
In addition to a competitive rate, flexibility was key, as the client intended to pay a lump sum off the mortgage in approximately 12 months time. After discussing these requirements, his mortgage adviser recommended a 2 year tracker deal with a major high street lender, which had no Early Repayment Charges at any time. This meant no restrictions on overpayments, and the freedom to move to a new deal if the client’s circumstances changed or rates began to increase.
Guild Mortgage Service, Provided by London & Country Mortgages
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