photo credit: Ian Muttoo

BoKloks takes a battering because of the slow down in the UK mortgage lending market. Click here to read the FT report. BoKloks provide high quality housing and are an initiative of Ikea in Sweden that may provide answers to first time buyers looking to get their foot on the property ladder.

BokLoks is collaboration between Ikea and construction company Skanska and is available in the UK under and exclusive license with property company Live Smart @ Home.

The concept is revolutionary so you might need to sit down to take this is. Let me know when you are ready. Its cheap housing fitted out with stuff from Ikea.

That’s right – now you can buy a house that matches your furniture, and what’s more these houses are available for rent, shared ownership or outright purchase.

Do read the article in the FT because it’s actually got nothing to do with a slow down in the mortgage market, and everything to do with lenders not liking the way that BoKloks are constructed from wooden frames as opposed to bricks an mortar.

Technorati Tags: housing, real estate, property, mortgage, finance

photo credit: ceonyc

Today the BBC is running a story about a mortgage broker called Isah Attayi who has been banned by the Financial Service Authority (FSA) for trying to fraudulently obtain mortgages for both himself and his clients by exaggerating his income.

In February, the Council of Mortgage Lenders (CML) warned of the scope for fraud by unscrupulous professionals in the property industry who tried to cash in on the demand for newly built city-centre flats.

As a property investor this is something that you at the very least need to be aware of. You will probably be in contact with a number or mortgage brokers that you use on a regular basis. Mortgage brokers tend to be like the sea, which comes in and goes out with the tide. This means that they all are good on their day – then their not so good, then they are good again.

Mortgage rates and deals change all the time. Suddenly one broker has a product from a lender that can’t be got elsewhere – because it’s exclusive. That’s why serious property investors use a bunch of brokers.

So why do you need to be careful? Many brokers fill out the forms for the applicant. If you’re a big investor this is a service you will insist on, otherwise you might as well apply for the mortgage yourself, after all – who wants to spend their life filling out forms? So you need to be absolutely sure that the information they fill out about you is exactly right and consistent. People make mistakes, they forget, they don’t understand.

Imagine for a second that you send the office junior out to get sandwiches and your only instruction is ‘get me anything but nothing that contains nuts’. The chances are you’ll be the one with the peanut butter and jelly sandwich.

Technorati Tags: mortgage, mortgage finance, mortgage fraud, business, real estate

There has never been a better time to get into property investment. UK Real Estate developers are feeling the heat as properties are being down valued, leaving easy pickings for savvy property investors with an eye for a bargain.

It sounds incredible but it’s true. The rule is – when no one else is buying, buy and when no one else is selling, sell. The media are giving out the message that there are hard times ahead in the UK real estate sector, and they are right. So now it’s a question of how you react to this news. Most people will run for cover leaving a few to make a killing.

The UK realestate market has been hard hit over the past few months and the situation appears to be getting tighter. This doesn’t make for great reading if you are one of those property investors due to complete soon. It is common knowledge that real estate valuers are lopping lumps off the open market value of properties they inspect even before they get out of their cars.

To make things worse mortgage lenders are getting tough on off plan with many giving it a wide birth, and those who are lending are strict. You will need a large deposit and you will have to pay a higher mortgage rate, so before you dive in do your sums. Shop around and look for a good mortgage broker, see what mortgage rate various lenders are offering and use a mortgage calculator to check out the monthly cost. There are plenty of mortgage calculators around so just type ‘mortgage calculator’ into your favorite search engine to find one.

If you’re sharp you will get a bargain in the current market, although it will be a property investment that you will have to hold on to for the next three to five years. So it might be worth looking at mortgage products with a fixed mortgage rate.

But don’t just take our word for it. We spoke to Lynsey Sweales of The Money Centre, and this is what she had to say:

>”Although there is lots of doom and gloom in the press about mortgages and the property market I think now is a great time to expand your portfolio. As the number of property purchases is down more people will be renting, as properties are not selling you can put in a cheeky offer.Good products are still around but they generally don’t stay round for long. By speaking to a buy-to-let mortgage brokerage they can help you on what products are currently available and also contact you when a rate you are considering is about to be pulled.

Brokers are worth their weight in gold more so than ever in this climate; speed of offer is of the essence and some brokers like TMC do have access to exclusive products.

If you choose the right property by doing your research and get on right product you are in a very good position.

If you already own property where there is a lot of equity tied up in it or you may not have reviewed the mortgage for a while you should be talking to a broker to get a free portfolio review. Even if you don’t buy another property it is important to have cash in the bank to help back up your portfolio.

Our clients are currently remortgaging existing properties as well as purchasing more properties to rent out, they are taking advantage of the market.”

Where as Jonathan Moore of Mortgages For Business added this:

“The majority of Buy to Let mortgage lenders are now refusing to lend on new build property due to fears of oversupply of this property type, particularly in city centres such as Leeds. The few lenders still in the new build market are risk adverse and will pay particularly attention to the valuation looking at the lower of ‘true market value’ or purchase price minus any discounts.

It could therefore be likely investors could pick up new build properties at substantial discounted prices to those being asked for six months ago, however they will need to be in strong financial position and have the ability to pay large deposits. It is important investors approach the sector with some caution”