Northfields

The Top Ten Questions that you Should ask a When Getting a Mortgage

The government recommends that customers searching out a new mortgage, should ask the following ten questions of a lender:

1.  How much can I afford to borrow?

2.  How can I tell which mortgage rate is best?

3.  What is the best type of mortgage for me?

4.  How should I repay it?

5.  Can I make lump sum payments?

6.  Are there any redemption penalities?

7.  Does this mortgage come with insurance?

8.  What other charges will I have to pay?

9.  What happens if I can't pay?

10.  What is the small print?

Arm yourself with these questions before seeking out a mortgage. 

Northfields Estates recommends that you use an independent mortgage broker so that through them, you will have access to all the mortgage products available and even deals that are often not available directly from high street lenders.  Call Northfields on 0208 840 6666 to be referred to an independent mortgage advisor or register your details by clicking here.

Ask the agent: What are the different types of mortgages available

Choosing a mortgage can be daunting as there are so many different types available.  So how do you set about choosing the right one?

First of all, decide how you want to pay back the mortgage – you can either pay off the capital itself in installments (called a repayment mortgage) or you can pay the interest only (called interest only or endowment mortgages) and pay off the capital at the end.

Repayment mortgages – Widely considered the least risky and easiest to understand mortgage type, your monthly payment pays off a little of the lump sum of the mortgage, as well as interest on the loan. At the end of the term the mortgage is cleared. If you do not keep up with repayments the lender can repossess the property.

Interest only mortgages – With interest only mortgage you pay-off the interest on the loan but not the lump sum of the loan. At the end of the specified term you are expected to repay the lump sum.   This type of mortgage have proven popular with buy-to-let investors and first-time buyers in particular because they are cheaper than a repayment mortgage.  However, you must have the funds available to pay off the lump sum and must have a system of saving in place.

Endowment Mortgages – Endowment policies were very popular in the 1980’s, but many lenders did not fully inform people of the risks of this mortgage type.  As a result many lenders had to pay compensation for mis-selling.
An endowment policy is intended to provide life insurance and save funds to repay the loan at the end of the term (usually 20-25 years). It is important to understand that if you choose this mortgage type, if the investment performs badly, you could face a shortfall on your loan at the end of the repayment period.
Since the eighties, endowment mortgages have declined sharply in popularity.  Relatively few endowments are sold today but there are still millions of policies yet to mature.

In addition to choosing the mortgage type, you must choose how you are going to pay the interest on the loan.

Variable rates - Your lender adjusts their rates in accordance with changes in the interest rate set by the Bank of England. When you have a variable rate mortgage you pay the changing rate set by your lender.  Whatever kind of mortgage you start with, it is likely to change to variable rates at some point.

Fixed rates - The interest rate is fixed for a specified period, usually two to five years. These are ideal for budgeting or if you think rates might increase, however, you do not benefit if rates fall, and will face financial penalties if you abandon your mortgage deal before the end of the fixed rate period.

Capped rates – Capped rates are fixed, but if rates fall, you pay the lower rate which can be convenient for budgeting.

Cash back deals – Lenders sometimes offer money back if you take out a particular mortgage. However, be aware that you may be subject to penalty charges if you later want to switch mortgages.

Discounted rates – With this kind of mortgage the borrower is offered a discount off the lender's variable rate. The rate paid will fluctuate in line with changes in the variable rate. The discount applies over a particular period.

The information above is for general information only and does not constitute investment, tax, legal or other form of advice. This information should not be relied up on as the basis to make any decisions. Always obtain independent, professional advice for your specific requirements.

Northfields Estates recommends that you seek the advice of an independent mortgage broker.  Independent brokers are not limited to recommending particular products and often will have access to deals not available on the high street.  Northfields are happy to recommend an independent mortgage advisor for your property transaction, call us on 0208 840 6666.

Royal Institution of Charter Surveyors Reports that Sales Prices are Improving

The majority of surveyors (almost 60 per cent) are reporting that the gap between asking and selling prices is narrowing, says RICS research. 

In August 2008 the story was markedly different when the gap between asking and selling prices had increased.  Currently, across the UK, houses are selling at an average of 11 per cent below the asking price with sellers in some regions being forced to accept as much as 26 per cent off their advertised price.
 

In contrast, house sellers in London are now achieving sales at around 93 per cent of asking price, with 55 per cent of surveyors reporting that the gap had narrowed over the previous three months.  At Northfields Estates, a recent example of increasing confidence is a three bed house on Elthorne Park Road, Hanwell, W7 which we sold within 98% of the asking price and with multiple offers and buyers missing out.

Brigid O'Leary, RICS senior economist said of recent market activity: "The improvement in sentiment that has been captured in recent Housing Market Surveys is reflected in a narrowing in the gap between asking and selling prices.

"As new instructions continue to decline, a lack of supply is providing some support to house prices and that has helped to close the gap."

Unfortunately, the lack of supply means that we have several disappointed buyers that are actively looking for property, particularly in the Olde Hanwell area.  If you would be interested in an up-to-date valuation on your home and specific advice on the current market place in your area, please contact us on 0208 840 6666 or click here to request your free valuation online.

Northfields Avenue Western Fun Day June 27th

Northfields will be participating in the Western themed Northfields Avenue Fun Day on Saturday June 27th from 12-4pm.  The businesses and associations along Northfields Avenue will be hosting games, competitions, children's activities and live music.

Northfields has participated in this fun day for several years now.  The event is always terrific family fun.  In addition, the event raises money for local childrens' charities the Log Cabin and Steps.

Bring the family down Northfields Avenue for a day of fun!  We'd love to see you.

Hot Property for Sale in the Highly Sought After Brentham Estate in Pitshanger

Properties do not often come up for sale in the extremely popular conservation area of the Brentham Estate in Pitshanger, so when an absolutely stunning property like this newly refurbished two bed cottage in Denison Road becomes available it is wise to move quickly before it gets snapped up.

 

This property is made even more desirable as its 48' garden backs onto the village green, the property falls into the North Ealing Primary School catchment area and is being sold with no chain.

Call now to view this property on 0208 998 3111 or click here to see more photos and a floorplan.

Fantastic Value for Money on 4 Bed House for Let in Oaklands Road

Beautifully presented four bedroom house with well maintained private garden

  

 Through reception room with lounge and dining area

 

Arranged over three floors including the loft room and situated within walking distance to Boston Manor Tube Station

£1,450 pcm

Don't miss out on this fantastically priced property.  Click here for more details or call 0208 567 6660 to book your viewing now.

Lights, Camera, Action! Our Own Branch Manager, Kylie Menz Appears on Property Snakes and Ladders

Our very own Kylie Menz, Branch Manager at our Northfields Avenue Sales Office appeared on Property Snakes and Ladders with Sarah Beeny last night on Channel 4.  The episode focused on three first-time developers who jointly purchased a 5 bedroom property in Brentford and planned to divide it into flats.  The show's producers contacted Northfields to value the property to offer our expert opinion on the property's value after it had been refurbished. 

Kylie says of her experience in front of the camera, "It was absolutely no problem to value the property as I have the experience of doing valuations and selling property regularly in Brentford.  However, talking in front of a camera was a new experience.  The camera crew was fantastic on the day and gave me lots of tips, making the experience really enjoyable for me."

To read about the episode and see the photo gallery click here.   To see the episode in its entirety click here.  Please note that you'll need to click on the episode dated 16 June 2009 and you will need to Flashplayer downloaded on your computer.  If you don't already have it download, download it for free by clicking here.

"The interesting thing is that this episode was shot in November 2008 and shows how quickly the market can changed.  We are finding that there are fewer properties on the market in sales at the moment.  This lack of supply combined with pent-up demand from buyers, particularly for buyers looking to move into certain school catchment areas in time for the start of the new school year, has caused an increase in sales turnover.  We are seeing realistically priced properties being sold quite quickly with increased competition from buyers", says Kylie.  If you have a property is Brentford or anywhere in West London that you would like valued, call Kylie Menz on 0208 840 6666 or click here to request your valuation online.

Why do you need a Home Information Pack?

Ever since April 6th, when the requirements for Home Information Packs (HIPs) changed slightly with a Property Information Questionnaire now being a required element of the pack, some people buying and selling homes are still struggling to understand why the HIP is required and why it is of benefit to them.  The following video explains the benefits nicely:

If you are selling your home you must have a Home Information Pack in place, Northfields Estates can refer you to a reputable HIP supplier, call us on 0208 840 6666.

Top 4 Questions to Ask your Estate Agent at a Valuation

If you have never had your property valued before, whether for a sales valuation or for a lettings valuation, it can be a bit overwhelming.  What questions do you ask the agent to ensure that you get the results that you are after?  Northfields Estates suggest 4 key questions to ask your agent.

1.  What price do you think that my property will realistically achieve in this market?

Many estate agents will quote the asking price that they would list your property for when marketing.  Although this figure is important to know, it is far more important to know what price the agent feels your property will realisticallyachieve.  If you have a realistic figure you can budget better and decide whether putting your property on the market will actually help you to achieve your goals; whether that be buying another property, meeting your mortgage payments, or achieving a certain return on your investment.

2.  What are you basing that figure on?

Unfortunately, there are estate agents who will try to impress you at the valuation by inflating the figure that your property will achieve.  Everyone wants to hear that their property is worth more than they thought. However, this type of practise may only delay your disappointment  - your property is actually only worth what someone will pay for it.  So, when an estate agent gives you a figure, always ask what they are basing that figure on.  Good estate agents will have done their research and can provide you with the prices that similar properties in your area have recently sold for (estate agents call these 'comparables').  The agents should also know what other similar properties are currently on the market in your area and will therefore be your competition.  Imagine, if there is a property similar to yours being marketed for significantly less - which property are prospective buyers and tenants going to want to view?

Also, keep in mind that even if the estate agent managed to sell your property for a figure that is above the sold prices achieved by comparable properties in your area, the surveyor may very well down value the property if there are not sufficient comparables to suggest that similar prices could be achieved if the property needed to be resold.

3.  What applicants (prospective buyers and tenants) do you have registered at the moment that would be interested in my property?

Good agents should know exactly who they have on their books and should be able to tell you if they have someone looking for your type of property.  This way, you will know that they can get people in to view your property right away and hopefully sell or let it quickly.

4.  How often can I expect feedback from you?

Estate agents should be providing you with regular updates and feedback regarding what people who have viewed your property are saying about your property.  As a result of feedback, your estate agent should be able to make recommendations - perhaps your property needs to be repainted or the price needs to be reduced.

With the answers to these four questions you should have a feel for the estate agent.  Were they well prepared for the valuation with lots of knowledge on the market and your area?  Were they transparent and straight forward when giving answers about price? 

To take advantage of Northfields multi-award winning service, click here to request your valuation or call 0208 840 6666 - we'll be waiting for your questions.

10 Good reasons to have your property managed!

1. Peace of mind

You won’t have to lose sleep over those late night calls, or frustrated tenants calling about their heating not working or their sink leaking. You can rest assured that your property is being looked after by a multi-award winning team with over 20 years experience

2. Quality contractors

You will have the assurance that all the contractors that we use have been tried and tested and subsequently hand-picked for our maintenance team. These are the people that the team at Northfields also entrust their own home maintenance requirements to. Fully qualified, professional and good value for money contractors.

3. Dedicated management team

Based at our head office in Northfields Avenue, our management team are available Monday to Friday and have also extended their availability by providing a 24 hour emergency contact number for any maintenance emergencies when no one from the Northfields team is available to assist. Our portfolio of properties is rapidly growing and due to the wealth of experience and ‘always going the extra step’ attitude of which we are so proud.

4. Inspections

Regular visits or ‘inspections’ are made to your property in order to inspect the condition in which it is kept by the tenants and also to advise on any maintenance work that may be necessary. Up-to-date reports are then sent to you and kept on file noting all our comments and suggestions.

5. Minimal vacant periods

Historically, our managed properties don’t experience void periods of rent loss. We are informed when tenants wish to vacate so therefore are able to maximise the marketing time for re-letting the property.  In addition, due to regular maintenance our managed properties are often in better condition, making finding new tenants quickly much easier.  At Northfields Estates tenants are always found within the 2 month notice period.  Tenants in managed properties also tend to stay on for longer tenancies due to the peace of mind that they are being looked after.

6. Quality tenants

Our records show that most professional tenants and all corporate tenants take preference to renting a property that is managed by us. The main reason is peace of mind - there will always be a point of contact for them whenever they should need to call and any problem will be dealt with swiftly and professionally.

7. Cash Flow

Management fees are paid monthly as opposed to upfront. This means that as soon as your new tenants move in you will start receiving rent and will be able to manage your finances knowing when and what to expect each and every month.

8. Legislation

With a managed property, legally required safety checks (for example the Landlord gas safety certificate) are diarised and updated on your behalf, saving you from any last minute rushing or worry that you’ve forgotten something!

9. Rent collection

Tenants pay their rent to Northfields by standing order which is set up by us. Up-to-date statements are sent to you for your records.   Our dedicated accounts team are always at hand and ready to help with any queries you may have.

10. Professional Inventories

We insist that all our managed properties have a professional unbiased Inventory report and schedule of condition at time of check-in and check-out of the tenants. This protects the condition of your property so it always shown in its prime and doesn’t lose its rental value. Most importantly it saves you, the Landlord, from confrontational tenants who may want to dispute damage or wear and tear that you may be well within your rights to charge for. Professional property management is the hassle free route that ultimately saves everyone from headache!  

For more information about our property management services call 0208 840 6666 or click here for more information.