More first time buyers purchasing homes together

Increasing numbers of first time buyers are opting to buy homes as a couple rather than individually, claim independent mortgage experts.

John Charcol said that in the past, lifestyle choice and affordability have meant that there are more single first time buyers, but this figure was reversed last year with joint buyers making up half the home purchases compared with 45 per cent the previous year.

Katie Tucker, technical manager for John Charcol, said: “Buying together is a very sensible choice in terms of affordability. Not only for splitting the mortgage and the bills, but more cuddling up should save you on the heating!”

She added that increases in property value and mortgage payments with incomes remaining the same are all factors which have contributed to the buying trends.

Ms Tucker also said that more women are buying property jointly with more men taking the decision to settle down with a partner for their first home.

Meanwhile, research from MoneyExpert.com showed that as many as 1.39 million homeowners have switched their mortgage provider in the past six months.

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Tracker mortgages ‘coming into their own’

Tracker mortgages are now “really coming into their own,” according to a leading mortgage adviser.

Ray Boulger, senior technical director and spokesperson for John Charcol, has said that, “providing the starting point is good”, a tracker nearly always gets you better value than a fixed rate mortgage.

He said: “We’ve been recommending tracker mortgages for those people who want a variable mortgage for a long time.”

A tracker ensures a consumer’s interest rate on a mortgage moves in line with the Bank of England’s rate. This does not leave home owners “at the mercy of your lender”.

There are a “proportion of lenders” that do not move their standard variable rates and associated discount rates in line with the Bank’s rate.

Mr Boulger added that “availability is not a problem” for tracker deals.

While Nationwide, Abbey and Halifax have all lowered their rates, following the Bank of England’s reduction in its base rate by a quarter of a per cent, the Press Association reports that they are three of only eight of the 120 or so mortgage lenders in the UK to have done so.

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Lenders increase mortgage rates

Halifax has said that global turmoil in credit markets was to blame for the rise in rates of 20 of its tracker mortgages.

More specifically, the bank explained that there had been a sharp increase in short-term interest rates that banks pay when they lend to each other.

Such mortgages are often financed by banks borrowing money on the international markets yet because of the sub-prime fears in the US availability of lending has slowed dramatically.

Halifax’s announcement of its decision came in the wake of news that Northern Rock had ceased offering sub-prime products, which it had done in partnership with US investment bank Lehman Brothers.

Abbey has also increased the tracked margin above the Bank of England’s base rate for its tracker products.

Halifax’s Paul Fincham, said: “Pricing has changed in the markets. Also we have seen other lenders move so we needed to adjust our rates.”

Ray Boulger, spokesperson for the broker John Charcol, said: “It means that the effect is now being felt by borrowers across the board.”

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