How can we help you?
We invite you to get in touch via a free, no-obligation initial consultation.
This is our take on what is currently happening in the mortgage market. Our views are often cited in several national publications, including; BBC News, The Times, Telegraph, City AM, FT Adviser and Daily Mail, as well as a number of key trade publications, so this should keep you ahead of the curve. If you have any questions on any of these stories, or would like further information, please do not hesitate to get in touch.
Long-term rent adding to the increased cost of moving
We continue to hear from clients who sold their primary residence in the fiercely competitive market over the last 18 months in the run up to the end of the SDLT holiday so they could be chain free and have larger deposits and leverage this fact to get a better deal in the purchase market, still struggling to find somewhere to move to. We have seen many of these people unwilling to pay the above asking price offers a lot of people have been selling for over the last 12 months and this has meant they continue to be stuck in limbo. We have reports of low stock and properties still being snapped up by many interested parties when they do come on, with one of our agency partners, Jackson Stops reporting that nationally there are 19 buyers for every newly listed home.
Increase in enquiries for mortgages on flats
We have noticed an increase in the number of enquiries from clients looking to purchase flats for both residential and investment purposes and this marries up with recent feedback from our estate agency partners in London and the South-East.
Competition continues in the BTL market with further rate cuts
The normally more conservative BTL mortgage market defied expectation in the latter half of 2021 and BTL rates continue to be at rock-bottom, with the best 2-year fixed product still sub-1% (0.99% although accompanied by large fees). Competition in this space between lenders is fierce and we have seen a great deal of product innovation and the relaxation of criteria, the most recent being Accord’s no-ERCs 5-year fixed BTL product, which gives borrowers full flexibility in combination with the rental calculation a 5-year fixed term gives. Thus, it comes as no surprise, that this competition has extended to limited company and portfolio BTL market where the rates are looking increasingly tempting to investors with a number now at under 3% and lots of limited-edition products coming on to the market – for example Zephyr have recently reduced most of their rates. Often now you do need a property with an A-C EPC in order to secure the best specialist BTL rates though.
Increased lead time on mortgage enquiries
Due to supply-side issues in the housing market discussed above and the potential for further base rate rises affecting those looking to remortgage in medium term we are seeing an increasing lead-time on enquiries with some clients not looking to actually proceed with their remortgage for up to 6 months (so sometimes a year away from their product ending) but looking to lock in the low rates now and far more than usual we are seeing speculative enquiries with borrowers far from starting their property search just looking to see what they can borrow when they do start looking.