Move 2 You

There is no other topic more guaranteed to get people talking in this country than what is happening to house prices; ok maybe the weather.

When the market moves in the right direction we feel good and we feel more wealthy. And when prices fall like they have done over the last year or so we worry a lot about what the consequences might be and we feel harder up.

It’s in the DNA of the nation. We are a nation of home owners and where we live and what we do with our houses tells others a lot about who we are. We add decking to our gardens, we carry out loft extensions, we knock down walls, build conservatories, our home is an integral part of the lifestyles we lead. It matters to us.

On the one hand just take a look at the TV schedule in an average week. Even now with all the turmoil in the economy there are programmes on every day about people buying and selling houses or developing properties or doing properties up …. if there is an angle on the housing market then there is a programme being made about it.

And on the other hand in the broader press we have been hit with so many stories over the last year about about how much money we are losing on our houses.

Why is this?

Because we read it! We lap it up!

And what do you think is the effect of these headlines on the average man in the street, with a house and a mortgage?

Well it makes us worried doesn’t it? Of course it does. That’s because it is a natural reaction to hearing bad news. But more than that, we start to hesitate about what we should do with our homes. Those of us that want to move put plans on hold, deciding to see what happens to prices before committing to a move.

And this becomes a self fulfilling prophecy and this is where we have been in the last 12 months or so. We are told that house prices are going to fall, so fewer of us are in the market for a new house – i.e. demand falls and guess what – prices fall to compensate.

Now clearly there have been some real problems in the market, no-one can deny that. We have seen for example a massive reduction in availability of finance due to the credit crunch.

But even with this the doom and gloom that is spread just adds to our woes. We develop a “herd mentality”. We feel safe if we act as a group – it is an instinct that goes back as long as we have been walking the face of this earth. If everyone else is doing something then it must be the right thing to do.

Can you see how much of what we do is all about psychology? Our mind drives our actions and if everyone feels bad about the market we feel bad about it as well.

Sometimes the right thing to do is to ignore the widely held belief, to take some control back and to act in your own best interests based upon your own individual circumstances.

What is the market after all?

It is just a collection of individuals buying and selling. So if you want to sell your home and you do manage to find a buyer who will offer you the price you want would you still sit tight and refuse to act just because that was the perceived right thing to do?

Of course not.

That’s all for now but check back here soon for more about why the way we see the housing market is all wrong.

In other articles we’ve spelled it out clearly – one of the biggest problems with today’s property market is mortgages. Specifically, how much harder it has now become to get a mortgage.

Especially hard for FTBs (First Time Buyers).

And as we all know, FTBs are SO important to the property market. Without them the whole system grinds to a juddering halt. As we can so clearly see right now.

We as we promised in this article we’re going to provide a lot of information that can help you get hold of a mortgage. Some of this info is common sense. Some of it is uncommon sense. And some of it is only known to a very few souls … so only they are benefiting from these secrets.

So do check back here as we reveal more of what you need to know. Our goal is to help people successfully move house (whether you’re selling, buying or both). And by helping you, we hope you’ll think of move2you as a really useful service, and you’ll recommend us to your friends and contacts.

Because the more people who use move2you the more that every single person benefits (not just from this information, but in the matching-people-and-properties-service that’s at the heart of how we help).

So, to start the ball rolling here’s the Option 1 for Raising the Deposit. (We’ll cover at least 7 fundamentally different methods in this series of articles).

Option 1 is in the “common sense” category. It won’t be a surprise to you, and it may be the only way you can think of to raise a deposit.

That’s right – we’ll start off gently and easily … we’ll save the more unusual methods (and certainly less well known ones) for later articles … because we would love you to come back here soon!

Option 1 is the most well-known method. It’s the first one most people try.

But … it’s also the slowest method, and, surprisingly, it’s the hardest method for most people.

And the method is …

… “Save It”.

Sorry to be so dull and predictable there! I did warn you that it wouldn’t be a surprise!

But let’s not just dismiss this as “yeah … of course I knew that … now tell me something I don’t know!” … because we’ll cover a whole variety of different methods, as we’ve promised.

Don’t just dismiss it … because it’s really important that you appreciate the pros and cons of this method. And remember … for many people, this is the only method they think is available to them!

So what are the pros?

- it’s easy to understand

- it’s personally “safe” (no risks involved)

- it’s easy to do (in theory)

- if you do it right, you’re guaranteed to get you to your target … eventually

Erm … any more pros to this method? (Please comment on this article to make any suggestions!)

Well, what about the cons?

- it’s not possible if your outgoings are higher than your income

- even if you’ve saved some money, it can still be tempting to spend it

- it’s easy not to save at any time … so you don’t progress

- it takes discipline

- interest rates on savings are, well, pathetic right now, so your savings won’t really benefit from compounding (By the way, you may be interested to know that Einstein called Compounding the Eighth Wonder of the World … do you realise its power?!)

- It’s. Soooooo. Slooooooowwww. Sure, you’re guaranteed to get there (if you’re disciplined) but it takes ages

Hmmm … a bit of a damp squib, do you think?

Sure, there are faster ways. And if you’re up for a challenge, there are ways that are certainly more fun!

But “Save It” is, nonetheless, a very real Option 1 for Raising the Deposit.

Simple rules:

(a) make sure your income is higher than your outgoings,

(b) be ruthless in minimising your outgoings,

(c) save the difference

(d) keep going until you reach your target.

Stick to those rules and you’ll get there.

Some time.

So there you have it – Option 1 for Raising the Deposit.

Options 2 – 7 will get you there faster. So come back soon to find out more.

(But don’t discard Option 1 – it certainly has its part to play … even if it’s one of many of the 7 Options that you use.)

Do let us know your views … we love to read your comments on these articles.

Speak soon.

Chris

In the last article on mortgages (see it here) we pointed out the way that mortgages are putting the brakes on the housing market – how they’re one of the main reasons people are not able to move house at the moment.

There are many reasons for that problem – some that are out of our control, and some that we can all do something about. There’s no point worrying about what we can’t change … there’s enough opportunity to seize by focusing on what we can influence.

The article is about the first of those – the first hurdle that you can overcome to help you successfully obtain a mortgage that will enable you to move house.

(Oh, this also applies to any of your friends & family, and to anyone else who might be wanting your house … so please help us share this information so you can help your buyers too!)

So … what’s the first hurdle?

It’s the way that banks (and any other lenders) look at you.

Now, you already know that our free move2you web service matches people with property, and property with people - but did you know we also rate the quality of those matches – so you get to find out if the person who says they want your place really looks like they want it? After all, you don’t want to waste your time with people who are less likely to take things forward do you?

Well, if you put yourself in the bank’s position, you’d want the same thing. Many people now know that we all have a “Credit Score” – a file that’s kept on each of us that’ll give banks (and other lenders) information about our financial track record.

Some of us have checked that file, others can’t be bothered. The majority of people don’t know how to check it.

And when people think about this information they assume that the banks are interested in assessing risk.

This is a myth.

They’re not really using this information to check risk. What do you think they’re more interested in?

Think about this! – because if you do “get this”, you can put yourself in a much stronger position at the very first hurdle.

What are the banks really looking for? What do they obsess about? What’s reported in the media about banks?

It’s all about profit. Banks want to know how much profit you can make them.

Do you see how that’s different from risk? Sure, if your credit file tells them you have a dodgy track record in paying bills and loan repayments then they’re much less likely to want to lend to you. But not because of the risk itself … because you will likely make them less profit that someone else.

This is so important!

So what can you do about this?

In later articles we’ll give you some actions that you can take to improve your financial chances, but for this article today we’ll provide the starting points:

Number 1: Think Like They Think

In other words, if you know what the banks are looking for, you start to know how to play them at their own game.

So … what are they looking for? (Imagine you’re looking for a date …) They’re looking for Attractiveness.

Hmmm … what does that mean? How can you be “financially attractive”? Does that mean you’ve got loads of money?

Well, that helps … but that’s not really what we’re talking about here. The thing that makes you super-attractive to banks is that they think you’re going to make them lots and lots of lovely profit. Nothing will get the salivating more! We’ll cover more on how to do that in later articles.

Number 2: Take control & ownership of your file – only YOU care about it!

It’s sad, but true. You’re the only one who really cares about your credit file. Or you should! Because if you don’t care about it, then that leaves no one who cares about it.

And that can really harm you.

Lots of organisations add information to your file – credit card companies, utility companies, banks, mortgage lenders and many others. But not one of them cares about your file. Sure, they won’t create a problem for you deliberately, but they all make mistakes. It’s just that there’s no consequence to them if they do make a mistake.

But there could very well be a consequence to you.

So … you need to know if your file is right, and if it’s got errors in it. Because errors could make you “ugly” … and you want to be “attractive”, right?

We’ll tell you where to get your credit file (for free) in a moment. First, let’s look at what you need to do once you’ve got hold of your file.

Number 3: Verify and Act

What should you look for when you’re checking your file? Here are the priorities:

(a) Right Personal Details – is everything about “you” (the person) correct. Name(s), address(es), other personal details. If they’re not right you could get mixed up with someone else … someone who’s “ugly”. And you don’t want that!

(b) Right Debts and Balances – are all the credit agreements listed really yours? Are the balances right? Are the amounts repaid shown correctly? Do they show any missed payments? Are those accurate? Again, wrong information could make you look “ugly”.

(c) Currently Active Accounts Complete – does the file include all your currently active records? If you know something’s missing it’ll be showing up on someone else’s file. And if that record is something that’ll make you look more “attractive” then you definitely want it back on your file!

Number 4: What if there’s an Error?

If you find a problem with your file, firstly remember … you’re the only one who cares! So you need to write to the agency requesting a change be made to your file. Again, we’ll cover this in later articles.

What to do Right Now

Are you attractive or ugly? You need to know … so you need to get hold of your file. There are many ways that you can do this, and most charge a fee for doing so.

It’s well worth spending money on this anyway, but for now, here are a couple of ways that you can get the information for free, using the main two credit reference agencies, Experian and Equifax:

For the Experian route, go to www.creditexpert.co.uk and choose the Free Report option. They’ll sign you up for a 30 day free trial. Once you’ve got your file, just phone them on 0800 656 9000 to cancel your trial and that’ll stop any charges being made.

Another option is through Equifax, at www.econsumer.equifax.co.uk You can try any of their services, but look for the option that says “free for 90 days, then £69.99 for 12 months”. Again, once you’ve got your report, just phone them on 0870 010 0583 to cancel the membership and you won’t get charged.

Of course they could change their offers and contact numbers at any time, so check out what’s available – these details are right as this article goes to press.

So … we’re starting to uncover a lot of information – really important stuff that you need to be aware of … and this is just the first hurdle when playing the mortgage game.

But, if you know how the game is played, you can get better at the game, can save yourself lots of money, and can win.

And that means you (and everyone else you share this information with) can get the best deals, and can move house … and you can even help other people in your chain at the same time … so everyone wins!

Stay tuned for more key info that’ll make all the difference to you.

Chris

Have you seen or heard the news about the housing market recently? Did you hear that famous phrase “green shoots” used to describe a slight upturn in house prices?

Well, don’t be fooled into thinking that everything’s suddenly going to turn round and be hunky-dory! As much as we’d all like there to be a swing to upward prices, that’s still some way off.

But there are signs of change … some estate agents are saying that there they’re getting more instructions now. Some are saying that sales volumes are rising.

All well and good.

But we all know that there are real, deep-rooted and fundamental reasons why it’s still going to be a while before it becomes easier to buy and sell your house – so moving house now is still going to be more difficult than it was a couple of years ago.

And one of the main things that’s holding back the market?

The massive reduction in the availability of mortgages.

Oh, and not only are there fewer mortgage options around than a couple of years ago, the banks are now so worried about the risk of lending that they’re making it about as hard as they can to qualify for a mortgage.

And if people can’t get mortgages then they can’t move house.

And the whole market slows up.

Well … over the last few months we’ve been on a fact-finding mission … we’ve been researching not only what’s really going on with house prices and with volumes, but also we’ve been uncovering ways that we can all beat the system … secrets that we’ve discovered that will raise your chances of getting the (right) mortgage you need (or anyone else in your housing chain needs – so it’ll be in your interest to spread this news around.)

Here’s the background:

(a) from 1997 – 2001 house prices were climbing steadily, and credit availability was carefully controlled, with interest rates at a consistent level;

(b) from 2002 – 2006 house prices started shooting upwards, and credit availability became much more freely available (fewer constraints) and interest rates were on a downwards path, and looking consistent;

(c) from 2007 the game changed – prices started declining and credit availability all but dried up … despite interest rates falling yet further.

So we have 3 factors – house prices, credit availability and interest rates. In the crazy years up until 2007 all 3 were working together to create – what is now clear to anyone who looks – a market that looked fantastic (if you were on the property ladder already), but that was built on sand … and heading for a fall.

The response to that fall is curious – properties are now cheaper than they’ve been for years, and interest rates are similarly cheap … normally these would be conditions that drive the market relentlessly upwards.

But here’s the rub – the availability of credit (i.e. mortgages) is sparse, and people’s confidence is low, so we have a bit of stagnation.

So with that background explanation we can now reveal what’s going to be coming up on this site – it’ll be packed with tools, tips, techniques and secrets that – at the very least – will arm you with what you need to know so you can buy the house you want … and make sure you’re selling to the right kind of buyer.

Because … despite what we all read in the press … people do still want to move house … they just lack some tools and ammunition to be able to do it.

Here’s a taste of what’s coming up:

• 7 different ways to raise the deposit you need (even if you think you can’t)
• How to give yourself the best chance of getting a mortgage (how to beat them at their own game)
• 11 mistakes to avoid that will stop you getting the right mortgage for you
• A secret way of moving into the house you want with no deposit
• The latest rates and deals – and conditions you need to be VERY wary of
• What the “clever people” (who are designing up & coming mortgage products) think will happen to mortgage rates – and it’s not what you think!

So, that’s a small sample of what’s coming up in the days and weeks ahead.

And there’s a whole lot more than just mortgages too. (More on that to follow!)

We’ve been researching what works … and now we’re ready to share it with you … so you can move house successfully.

We look forward to sharing this with you! See you back here tomorrow! (Don’t forget you can use the RSS facility so “we come to you”, it just makes it a bit easier for you to keep updated.)

And if you have any comments to add, please feel free in the forms attached here!

See you soon.

Chris

So the Bank of England lowered interest rates to an all time low, just 1.5% the lowest rate since records began 315 years ago.

So now we have the debate about who benefits, who loses. If you’re trying to sell your house at the moment this should make your property that much more affordable to potential buyers.

That is of course if the banks pass the rate cuts on and if they ease up a bit on their lending criteria.

The best rates at the moment are reserved for those who lay down a 40% deposit; yep that’s right, 40%. Fat chance. That puts the best rates out of reach for the vast majority of buyers. And for the rest you need an impeccable credit rating to be approved for one of their other deals.

So the rate cuts are good for those that have a tracker without some clause that means the banks don’t have to pass the cut on, but if we don’t see an increase in the number of mortgages approved we aren’t going to see a recovery in the housing market any time soon.

Of course there are buyers out there, it is just that much harder to find them at the moment. If you’ve spent money on a HIP and you’re ready and waiting to show buyers around your freshly spruced up property you are going to be waiting a long time.

There is something you can do to help yourself. You can use the UK’s first property matching service that puts buyers and sellers in touch.

move2you.co.uk instantly lets you see how much interest there is for places that match yours - for FREE. It rates the quality of these matches and enables you to contact these potential buyers. If they contact you back you could be on your way to selling your property!

Sound good? It’s got to be worth checking out. It’s completely complimentary to any activity your estate agent may be carrying out on your behalf and the more people that use it the better it will be for everyone using it.

Until next time.