The credit crunch started to hit the Bingham Property market, and in November / December 2007, and for the following seventeen months, Bingham property values dropped each and every month. Between October 2008 and March 2009, interest rates dropped six times in six months from 5% to 0.5% to try and stimulate the British economy.
Thankfully, after a period of stagnation, the Bingham property market started to recover slowly in 2012, but really took off strongly in late 2013 / early 2014 as property prices started to rocket. However, the heat was taken out of the market in late 2014/early 2015, with the new mortgage lending rules and some uncertainty, when some people had a dose of pre–election nerves.
Here is the good news for Bingham homeowners and landlords, over the last few months a mortgage price war has broken out between lenders, with many slashing the rates on their deals to the lowest they have ever offered. I read that the well respected
financial website Moneyfacts said only a couple of weeks ago, the average two
year fixed rate mortgage has fallen from 3.6% twelve months ago to just under
Interestingly, according to the Council of Mortgage Lenders, the level of mortgage lending had soared to a seven year high in the
UK. So what about Bingham? In Bingham, if you added up everyone’s
mortgage, it would total £361.3 million.
Even more interesting is when we look at Bingham and split it down into
the individual areas of the area:
- NG13 0 – mainly Bottesford, Langer, Plungar and Barkestone £69.1m
- NG13 8 – Bingham, East Bridgford £212.8m
- NG13 9 – Langar, Orston,
Whatton, Aslockton £79.4m
Since 1971, the average interest rate has been 7.93%, making the current 0.5% very low. So, if interest rates were to rise by only 2%, according to my research, the 919 Bingham homeowners, who have a variable rate mortgage would, combined, have to pay an approximate additional £4,115,400 a year in mortgage payments.
That means every Bingham homeowner with a variable rate mortgage, will on average have to pay an additional £4,479 a year or £373 a month in interest payments.
I know over the last couple of posts, I have talked about mortgages a lot however, I am not a mortgage arranger but a letting agent and as regular readers know, I always talk about what I consider to be the most important issues when it comes to the Bingham Property market and at the moment, in my humble opinion, this is the most important thing!
Buy to let is all about maximising your investment, increasing income and reducing costs. Please pop into see me at my office on the Market Place or call me on 01949 714101.