The British and their castles… I mean err houses! We have definitely seen an uptick lately in the number of enquiries for people to raise mortgages. I would even go further and say probably 75% of enquiries are from first time buyers which, from a housing market point of view is a very good sign!
When first time buyers enter the market, they tend to buy the cheaper homes which then allows those that bought their first home say 10 years ago (and have since started a family or got a promotion) move on to a bigger and more expensive property. My first point therefore is the “lifeblood” of the market seem to be returning.
Interest rates. In response to our current crisis, the Bank of England reduced interest rates to an ALL TIME HISTORIC LOW of 0.1% which basically means good news for anyone borrowing money. Now think about it, in most households, the largest debt will usually always be your mortgage so being able to borrow at record lows means things should be more affordable.
Coronavirus. A huge section of society has now been locked down for nearly 10 weeks and no housing transactions have happened, Ie: no new houses on the market, no surveys and no legal services so there is a huge “pent up” demand. People emerging from Corona-virus to some type of normality may now be thinking wither “my house is too small” (having been locked down in it) or “life’s too short” so I want to trade up. Don’t even get me started on the fact my legal friends are seeing record enquiries for divorces (as a family splits up, they need 2 houses and not 1!
What does this mean? For the right client, meaning those that have good credit files, have saved deposits and good levels of income then now is an incredibly good time to be getting on the property ladder. Lenders are desperate to lend (to people whom they can trust will repay their money) and looking at what’s on offer with estate agents there is some good (long-term) value properties available. Throw in the fact interest rates are unlikely to rise any time soon then there probably has not been a better time to buy a house for quite some years!
As always, whether you’re a first-time buyer, moving home or buy-to-let investor, we are independent and will never be beaten! Get in touch with your local experts and help ensure your own Financial Fortress (well perhaps your own “castle” anyway)!