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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.
Best available 2-, 3- and 5-year fixed now all green products
The best available fixed rate mortgages are rising and have been since the end of 2021. The best available 2-year is currently 1.88% and the best 3- and 5-year on parity at 1.98%. What is interesting is not simply the rate itself, but the fact these are only available for green products which reward those with more energy efficient homes, with EPC ratings typically in the A-C range, with reduced rates.
Rising asking prices and bidding wars leading to down valuations
The property market is in a strange place at present, demand is incredibly strong despite the economic headwinds and supply remains very constricted with Rightmove reporting twice as many buyers as sellers. This mismatch is continuing to drive up prices, with the average price of property coming to the market breaking the £350k barrier for the first time ever with the annual rate of increase now at 10.4% (Rightmove House Price Index, March 2022). We are hearing from our clients and our agency contacts of consistent bidding wars for properties and sealed bids increasingly common both for residential and investment property. This poses the question, given the economic realities, as to whether the housing market has become overheated and whether a correction is imminent.
Rise in commercial mortgage enquiries
We have seen a very large increase in commercial mortgage enquiries in the last month. This is due to the post-pandemic recovery, the lifting of all Covid restrictions and interlinked with this the return to city centres. But also due to the fact that some businesses that could pivot online thrived during the pandemic and thus have cash currently with which to invest in bricks and mortar premises or in property in general.