How is the mortgage market impacting the current property market?

How is the mortgage market impacting the current property market?

In recent weeks, we have seen more positivity in the mortgage market, which is leading to better products and opportunities for existing and future homeowners. While we do not provide financial services, we work with the best in the industry and make it our business to know exactly what’s happening so we can keep our local buyers and sellers fully informed about the property market as a whole. We’ve noticed several key factors that are contributing to the brightening landscape.

First and foremost, fixed rates appear to be on a downward trajectory, with some mortgage products now starting with a friendly “4.” This is reassuring for those hoping to step onto, or move up, the homeownership ladder. Furthermore, mortgage applications are processing faster than at the beginning of the year and this smoother workflow is not only reducing stress for applicants but also accelerating pathways to homeownership. This is also a welcome relief to our own in-house conveyancing team, who are spending less time chasing mortgage offers – and more time chasing local authorities instead!

Buy-to-let mortgages have become more accessible as lenders will now consider an investors’ affordability, rather than solely focusing on the projected rental returns. In these cases, we suggest prospective landlords seek the advice of a mortgage broker as the application process can be more complex.

At the lower end of the market, activity among first-time buyers is more active than it has been in previous months, hinting at a broader market resurgence. This growth is often a precursor to a more robust housing market overall, as it filters upwards. At the upper end, we have seen more flexibility from lenders offering longer mortgage terms as well as extending loan offers beyond the state pension age. Additionally, lifetime mortgages, now transferable to other properties, provide alternative options for those looking to secure a more viable financial future.

The Mortgage Charter, a collaborative agreement between lenders and the government, is offering vital support during these challenging times. One noteworthy feature is the provision of an interest-only grace period of up to six months for families facing financial difficulties. This demonstrates goodwill for those needing to weather the storm short-term, and potentially support those who are planning a move in the future. This is especially helpful for those needing to sell under strained circumstances. Homeowners that fall into the three Ds (divorce, debt, death) category can now benefit from some respite while they get their ducks in a row. 

Right now, the mortgage market is showing resilience and adaptability in the face of economic uncertainties. With falling fixed rates, faster application processing, and a growing first-time buyer market, there is genuine cause for optimism. We believe, and hope, the base rate will remain stable in the short term, providing a further sense of financial security for borrowers.

We work with some of the best financial advisers in the business and our teams are available to help to determine how much you can borrow in the current market. Use the form below to find out more. 

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Polly Greenway

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