The UK’s grey explosion has definite implications for the UK’s future retirement properties, as well as the residential real estate market in general, a new report has claimed.  Retired people from the UK’s most rapidly-expanding demographic, as well as older households will, between now and the year 2026, come to stand for half of all household growth. The numbers come from the 2010 Retirement Housing Report delivered by UK properties consultants, Knight Frank.

The report has highlighted the importance of the need for the construction, development and care industries to become aware of this growing trend, and further pointed out that action in the UK retirement sector has historically been a long way behind thinking and practise in countries such as the US, Australia and New Zealand. Liam Bailey, the head of research at Knight Frank, stated that although retirement villages have long been popular in the UK, there are still few in the UK, which means that there are decent growth prospects for the concepts.

Mr Bailey also said that the growth in popularity of retirement villages ’stems, firstly, from the UK’s ageing population. Also, there is a growing tendency among older people to place an importance of the need for security, as well as opportunities to socialise.’ He also stated that the trend to release equity through downsizing may also result in a great move towards specialised retirement housing. In terms of statistics, the majority of over 65s in the UK (around 89%), live in mainstream housing. Compared to this, only 6% (around 500,000 households) are currently living in retirement housing with only 5% (perhaps 400,000) living in either residential care or nursing care.

Mr Bailey went on to explain that the majority of retired people live as owner occupiers in mainstream housing, whilst most people decide to take up places in retirement homes as a result of bereavement, poor health or the need to be close to family. He went on to identify the great opportunities in the retirement housing market for modern, purpose-built housing-particularly where the retirement village idea is concerned. Housing requirements will continue to grow due to the fact that people over the age of 60 are healthier, more active and are living longer than ever. Also, with many older people continuing to work, such new retirement villages must take such needs into account, as well as more advanced recreational facilities as older people demand more from their golden years. Such retirement villages also provide employment, which can also have a beneficial effect on nearby communities. They may also help stimulate further interest in buy-to-let housing specifically for this purpose and help encourage good mortgage rates on fixed-rate mortgages for key areas – all beneficial to the local economy as a whole.

New research conducted by the user experience design company Foolproof indicates that consumers are still getting a poor deal when it comes to arranging and purchasing a mortgage online, despite the general ubiquity of the internet in most other areas of consumers lives. The recent Online Shopping Survey, conducted by Foolproof, investigated how consumers utilise the Web in order to search for and arrange a mortgage, and it discovered that the number of people wanting to arrange their next mortgage on the Net actually doubled in the two year period between 2007 and early 2010 from 9% to 18%.

Also, with regard to sourcing their next mortgage deals, 84% of people surveyed said that they intended to use the internet to do so, with 8% looking to do so via their mobile phones to get online access to information. Almost half (45%) actually stated that they would then go on to apply for and purchase their mortgage deal online, although it appears that this seeming enthusiasm is not matched by the mortgage industry.

According to the results of Foolproof’s survey the mortgage industry has failed to make any real progress in terms of delivering a simple and effective online experience for potential customers. The founder of Foolproof, Tom Wood, explained that the economic downturn over the past two years has made consumers much more savvy and determined to find better information and deals. In terms of mortgages, he stated that consumers were looking to get a knowledgeable foothold in a changed market along with information related to the availability of various products as well as lending conditions.

He concluded that consumers were being let down and hampered by the mortgage industry’s failure to improve its online content. In conclusion, he said that this made it much too difficult for consumers and potential consumers to obtain the information they needed.

Foolproof’s survey came up with a number of tips for consumers to better utilises the information and tools available online. First, they advise persistence. Remember that the mortgage market has changed dramatically in just the last couple of years, and it is important to stay up to date with regards to all news and changes. There are currently a number of different mortgage websites being run that contain useful, daily updated information about the market. They also recommend being as specific as possible with regards to the kind of mortgage you require, a this will help you to get the information you need that much faster. Use specific search phrases like ‘first-time buyer‘ and ‘four-year fixed-rate mortgages‘ to make your search faster and the results more relevant.

The latest figures released by Britain’s Council of Mortgage Lenders show that  property lending in Britain in January was more than one-fifth lower as compared to the same period at the same time last year, with loans also falling to a decade-low figure. Total gross lending dropped to £9.1 billion in January, which represents a 32% drop from the figures seen in December 2009, and the figures were also 21% lower than the figures seen in January last year. At the same time, lending levels fell to their lowest point seen since the beginning of the new century.

According to the Bank of England in a separate release, lenders have also reported that Britain’s extreme weather conditions towards the end period of 2009 and the beginning of 2010 had helped to lower mortgage approval levels in January. The CML stated that the larger than usual fall between the months of December 2009 and January 2009 confirmed that house buying activity was helped during December by a wave of borrowers looking to push their purchase through to beat the end of the stamp duty holiday.

The CML’s figures also revealed that there had been a 56% hike in mortgage advances for those properties affected by the changes to stamp duty in December 2009, a figure far higher than the 11% rise seen by the rest of the property market. The CML has predicted that the early period of 2010 is likely to witness a drop in activity levels due to the fact that more mortgage deals were concluded during the final period of 2009, as well as the uncertainty created by the coming British General Election in the Spring.

Paul Samter, an economist at the Council, added that the rather turgid recovery as well as debt market uncertainties probably meant that the housing market could only really expect a gradual recovery. Due to the fact that the banks will have to refinance around £300 billion of wholesale funding  next year it is thought likely that funding costs will rise which could have the effect of curtailing lending to businesses seeking commercial mortgages and households looking for new or re-mortgages.

New research looking into the mortgage markets has indicated that mortgage lenders are currently floating as many as six different versions of each of their key mortgage deals onto the market – even before any change of rates dependant upon the size of an individual’s deposit or how much equity they have. One example of this is Halifax’s three-year tracker deal, with a rate that is set at the Bank of England’s base rate plus 2.44% through until 2013. Such a rate reels people in as they see best-buy comparisons and adverts in today’s difficult climate. However, working out specific eligibility for this deal is exactly where confusion begins.

In order to qualify for this best deal rate borrowers will need a minimum of 40% equity if you are already a Halifax borrower as well as if you pay a fee of £999. Those who are not existing borrowers but instead have Halifax currents accounts will pay the base rate plus 2.76% as well as a £4 fee discount. For those who are neither borrowers of current account holders with the Halifax must pay the base rate plus 3.09% and can then also save £4 on the fee. The fee can also be cut to £495, however this will result in a rise in the interest rate to as much as 3.39% over the base rate depending on where your current mortgage and current account are held. Further, the definition of current account is not the Standard account but rather the Reward current account. This account demands a regular monthly payment of £1,000.

Other lenders are also undertaking similar practises, among them Northern Rock and Nationwide, with Nationwide charging different rates depending on just how the application is made. For example, applications through the website can be as much as 1% lower than through the branch. Whilst lenders argue that they are attempting to offer maximum choice to enable as many people eligibility as possible brokers state that the ensuing confusion can prove extremely expensive for borrowers attracted by low rates who are subsequently then offered a far less agreeable rate. As an example, even an extra 0.5% on the rate will mean an additional £42 per month payment on a £145,000 repayment mortgage. Because of this borrowers are advised to shop around and treat adverts with healthy scepticism, particularly if looking for deals on bad credit or re-mortgages with less-than-ideal histories.

According to a new survey by by the Co-operative Bank, one of the UK’s leading commercial so-called ‘ethical’ banks, almost two-thirds of mortgage customers in the UK have genuine ambitions to be free of their mortgage commitments before or at least when they get to fifty years of age, revealing that around 62% of those responding to it the were aiming for this goal. The report also hinted at interesting additional information in respect of what such mortgage freedom might have on British people’s lifestyles, and the research and responses suggest that the impact would be significant indeed.

As an example, over half of respondents (some 52%) said that they would in the event that they were mortgage free take more holidays each year, whilst a little under a third would look to increase their savings considerably. Also, 27% of those questioned told questioners that in the event that they were able to become mortgage-free they would examine ways in which they could fundamentally alter the way in which they work and their working patterns. They would look to do this by switching to part-time hours in some cases and by quitting work altogether in others.

Head of mortgages at the Co-ooperative, James Hillon, commented on the survey, saying that ‘The research clearly indicates that many mortgage holders are seeking to take the best advantage of the continuing low interest rate levels by making overpayments on their mortgages’ in addition to locking in reasonable fixed-rate mortgages and even utilising re-mortgages to clean up old residual debt to help put them in a better position to pay off all mortgage debt at a later date. Also, according to recently released figures from the Bank of England, mortgage customers that are on tracker products are currently enjoying mortgage rates that stand at their lowest levels since 1997. The figures state that, with the base rate of interest still remaining at 0.5%, the average tracker mortgage rate stood at 3.63% which compares very favourably with the figure of 3.92% that was recorded in December 2009.

Recent data has indicated that fewer people in the UK had their homes repossessed during the last three months of last year, and this was also mirrored by a definite fall in the number of court orders issued for the seizure of properties.

According to the Council of Mortgage Lenders, lenders repossessed more than 10,000 homes during the three month period leading up to December, a figure that is 13% lower than the previous quarter, and also 2% down on the same period in 2009. During the period of October to December 2009 there were almost 17,000 home repossession orders in the UK, and this figure is 15% down on the previous three month figure to September 2009. Independent figures issued by the Ministry of Justice showed that 42% fewer mortgage possession orders were issued by English and Welsh courts during the last quarter of 2009 as compared to the same period for the previous year.

With the current signs of greater stability within the labour market, as well as the general consensus that interest rates will stay long for a continuing period, the Council of Mortgage Lenders has cautioned that its previous estimate of 53,000 repossessions throughout the coming year now appear somewhat overdone. The Council warned, however, that we continue to face a rather uncertain period. They caution that, although the lower levels of repossessions are a tribute to continued low interest rates as well as efforts from the government, lenders and the advice sector, borrowers are likely to come under pressure as and when interest rates are eventually raised.

The job market has also been one of the key factors in keeping the number of repossessions lower than expected, with unemployment rising much lower than had been expected and much lower than was seen in the previous recession. Overall confidence in the housing market has also improved with a 5% rise in the number of construction orders during the three months leading up to December 2009 up by 5% on the previous year. New buy-to-let lending also rose for the second quarter in a row, further stimulating market confidence. Many home owners being able to take advantage of some of the best mortgage rates in years as well as find quality re-mortgages have also helped contribute to this trend.

The choice facing borrowers between a tracker or a fixed mortgage is a very tough one, with some opting for the tracker option as they are currently the cheaper option due to extremely low interest rates, although any sudden rise would make this choice look a very poor one overnight. With the inflation rate in the UK reaching 2.9%, economists remain split on exactly when and by how much the interest rate will rise.

Some economists are predicting a rise as early as May of this year, although this would still appear to be very much the minority view. Many others are forecasting no interest rate rises until perhaps the final three months of 2010, and more rises following in 2011. Whilst some may look simply at the current interest rate and inflation figures (CPI currently stands at 2.9%) to make their choice, a number of economists are advising that lifetime trackers may be the wisest choice. This may also be due to the fact that the predicted cuts in pubic expenditure and concomitant tax rises will result in the same curbed levels of inflation as would a rise in interest rates – even if inflation remains high-ish.

Many have forecast that rates may not rise over 2% for another three to four years. Tracker mortgages have continued to rise in popularity over the last twelve months, and currently account for more than half of all newly issued mortgages. In fact, figures for the easily part of last year show that around 90% of newly issued mortgages were fixed rate mortgages, especially for many first-time buyers. Yet, many Building societies are now breaking their promises to borrowers and raising their rates, citing what they call ‘exceptional circumstances.’ In the wake of this some mortgage brokers have postulated that, should rates remain at their historically low levels over the next few years, then those borrowers with smaller deposits may benefit more from a tracker mortgage. The decision is, however, more dicey for a borrower with a larger deposit, of perhaps 40%. Average figures show that, in such a case, the difference between the two mortgages would be negligible at best.

If you are struggling with getting your mortgage under control you can start to regain some power in your life by writing a monthly budget as well as looking at what options are available to you. Although UK mortgage fees may have risen considerably in the past few years despite historically low interest rates and considerable high levels of mortgage market competitiveness this does not mean you have no power on your side. Many UK mortgage lenders, for instance, are more and more open minded as of late to those people who may have bad credit histories or are simply looking at a helpful alternative to what they are currently facing in the market. UK mortgage protection insurance available in most areas can even help provide you with a valuable safety net to land on as well if you ever suddenly find yourself unemployed due to illness or injury – or even simply a company restructuring.

Many options today such as adverse credit remortgages (also known as bad credit mortgages), self employed, self certification or remortgages are all recently being seen available in the various UK mortgage sectors to help those in need. The mortgage market currently also looks set to improve offerings available to borrowers as new, cheap mortgage deals become open to help finance and support your particular conditions. This is particularly important now as the bank of England has recently decided to maintain the low base rate for mortgages for the next few months and will not increase rates until the following year.

This does not mean that the sector will say positive forever, however, as recent concerns over the ability for the mortgage market to keep up towards the end of 2010 are raising ever since Mr. King from the Bank of England announced that the Bank is not looking to continue the same low rate mortgage offerings into the following year, thus potentially solidifying the current 300bn debt facing the mortgage market into a difficult hurdle to pass. Still, in the meantime home owners and prospective buyers alike can continue to take advantage of the mortgage offerings available until that occurs and should look towards locking in a good fixed rate before it’s too late.

New research has suggested that the coming year could well be heralded as ‘the year of the home-buyer.’ It appears that house buyers are not expecting any further falls in property prices, as recent statistical evidence shows that as little as 3% of potential buyers are delaying a decision on buying until prices see further falls. Despite the fact that just over half of Britons surveyed in January 2009 felt that property prices would be unlikely to recover until the latter part of 2010, almost 30% recently surveyed now believe that residential property prices are beginning to rise, with 18% replying that prices had most likely reached their lowest possible levels.

With regards to potential first-time buyers, again, almost one-third are delaying the purchase of their first property in order to save sufficient funds for the deposit, and 10% are waiting for market conditions to give them reassurance with regards to job security. Conversely, the belief that residential property prices have bottomed out has made people generally less positive about the possibility of negotiating the price of a possible property. More than 20% of those questioned believe that it might now be possible to negotiate the price of a property down by 15% of the market valuation, which compares to around 30% that believed that such a negotiation and subsequent agreement could be reached when asked back in January 2009.

It has been stated that the events of the past year have revealed a real change in people’s general attitudes to house buying. Rather than waiting until house prices have fallen further, people are generally planning to buy and save up in order to furnish the deposit. They are also willing to negotiate their asking prices down from the original asking price, even despite the much stricter current lending criteria as well as the possibility of further rises in house prices.

Analysts also see the continuation of all-time low interest rate levels as of vital importance to house buyers of getting the right mortgage at the best mortgage rates possible, and generally recommend that buyers and re-mortgagers seek the best professional advice where the current mortgage market is concerned.

The giant Spanish banking group, Santander, is looking to further its expansion in the UK after posting huge profits in a British market where the group currently hands out half of all new mortgages. The Spanish giant’s mortgage lending share peaked at over 20% during the final three months of 2009, and its red, flaming logo began its sweep up and down the British high street and among various advertising platforms. The net lendings of Santander came to £7.6 billion in 2009, a figure that is reckoned to amount to half the net lending of the market in its entirety. The bank’s overall market share for 2009 stood at 18.6%, with a gross mortgage lending figure of £26.4 billion. Analysts at Santader believe these figures – especially those relating to market share – are their highest ever.

Satander now ranks as the UK’s third-largest bank in pure deposit terms, after RBS and Lloyds. This rapid jump in rank came principally after its acquisition of both Bradford and Bingley and Alliance and Leicester. The group now derives 16% of its total profits from the UK market, and has plans to expand still further after the Chairman Emilio Botin announced that the bank had posted 2009 profits in Britain totalling £1.5 billion, a rise of 30%. Senor Botin stated during Santander’s annual profits presentation that he would look to also take the SME business sector as Santander looks to ‘grow organically’ in the UK.

Currently, Santander is believed to be among the parties looking into acquiring the former Williams and Glyn’s branch network that current owners RBS will put  on the market next year. The network concentrates mainly on small business and commercial banking. Santander is also currently involved in discussions aimed at expanding in China and is looking at offering a wider range of overseas mortgages in various areas, although such discussions are believed still to be at a preliminary stage.

As far as the British market is concerned there is no doubt that Santander has benefited greatly from the collapse of its British rivals, most of which have paid for their past dealings in the highly risky investment banking sector which Santander avoided and therefore did not see the so-called ‘toxic’ losses witnessed by many of the British and other European  banks.