Category: money (4)

Prospective buyers considering shared ownership can now take advantage of a powerful new calculator, enabling them to work out the total cost of purchasing a share of their property over the full mortgage term, not just the first year.

Crucially, the Shared Ownership Calculator also enables users to effortlessly ‘stress test’ their borrowing against future rent and interest rate rises, or service charge changes — even letting them drill down into individual years to see the full monthly impact.

The ability to ‘staircase’ to 100% ownership of a property is integral to shared ownership’s appeal, but to date stair casing calculators have simply provided a Yes/No estimate of whether purchasing an additional share is affordable.

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The Shared Ownership Calculator enables users to see the full financial cost of stair casing multiple times and at any point in a mortgage, helping them to plan a strategy to reach their full ownership goal.

The new tool has been launched at a time when more people are now eligible for shared ownership following the raising of the income limits to £90,000 for London and £80,000 for elsewhere in the UK.
Before there wasn’t any tools available to help give people a stress-less test to maintain payments when circumstances change in the future, which they invariably do.

With certain other calculators, the ‘What ifs’ and potential risks facing borrowers seemed to be an afterthought rather than something that’s integral to the purchase process. With house prices still very high in certain areas of the country and income limits also recently increased, shared ownership is only likely to gain in popularity. Hopefully this calculator will help people to better understand the full financial impact and risks before they commit.

London homes have earned owners almost £200 a day on average already this year as prices have continued their remarkable surge. Local property markets across most of the city have risen strongly — despite the slowdown in some central areas — further widening the yawning wealth gap between the property haves and have-nots.
The average daily increase in a London home’s value between January and March was £197, equivalent to £71,905 a year, analysis of Land Registry data reveals. That is almost twice the average London salary of £36,258.
The most dramatic gains have been in once unfashionable areas in east London and the outer suburbs, as first-time buyers seek more affordable neighbourhoods. The biggest rises were in Lewisham, where prices went up £385 a day, equal to more than £140,000 a year. It was closely followed by Hackney, with prices up by £343 every 24 hours, and Barking & Dagenham, London’s cheapest local authority area, with £293 a day.
Homes in Kensington & Chelsea, the city’s wealthiest borough, have risen by “only” £169 a day. Central London’s property market has been hit by stamp duty rises on £1 million-plus homes. Uncertainty over the EU referendum in June has also deterred foreign buyers.

Recent figures suggest that help from parents to get their children on the property ladder, will help to finance 25% of UK mortgage transactions this year, making The Bank of Mum and Dad one of the country’s top ten lenders.
It is estimated that parents will provide a total of £5 billion worth of deposits for more than 300,000 mortgages, purchasing homes worth £77bn.
But this comes with a warning that relying on parental support might soon be unsustainable as parents could be giving away more than they can afford. The report, from Legal & General pointed to the disparity between wage growth and house prices – with the latest official figures showing average annual pay rises of around 2% currently at a time of house price increases of 7.6%.

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Its report said parental contributions already made up more than 50% of the wealth of the average household in London when property was excluded.
It described that scenario as a “tipping point” – adding: “Families clearly cannot continue to use all of their net wealth to help their offspring onto the housing ladder without putting their own financial stability at risk”.

Reducing carbon means cutting down on your use of basic resources such as gas, electricity and water. Doing this will save money, and you’ll be making your home a more efficient and healthy place to be.

The most cost-effective method is to prevent your home from performing like a leaky sieve! Insulate your roof, but also your walls and floors, as combined they can account for 75 per cent of your heat loss.
Insulating the roof of a typical detached house could cost £395 initially, but could save £240 a year in terms of reduced bills, so the pay-back period is fairly quick. Similarly insulating your walls and floors will keep living areas snug.

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Draughts account for a staggering 15 per cent of heat loss. Fitting excluders around doors, windows and letterboxes is a really manageable DIY job that will achieve great results.
Now that you’ve created a warm shell, you can start using energy more efficiently. If your boiler is more than eight years old, you might want to consider upgrading to a more efficient model. Going from a G to an A rated energy efficient model could save you £340 every year.
Controlling it effectively is also essential. Fit timer controls to your boiler and thermostatic radiator valves to every radiator, which will allow you to monitor your energy use tightly by having the heating on only where it’s needed.

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It’s worth looking into remote control systems such as Nest or Hive. Once fitted, they give you controllable warmth from the touch of your smartphone or tablet.

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