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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.
Property purchases taking longer as solicitors and valuers remain incredibly busy
Whilst there has been a slowdown in demand at the front end of the purchase market, further down the buying process solicitors and valuers remain incredibly busy. We are seeing it often taking 3 or 4 days for some solicitors to even look at the information sent to them by other sides of a chain and the time it takes for a valuation is increasing too. Moreover, on account of this huge demand, prices are high with some clients having to pay more than double pre-covid prices for legal services, we even have had a client quotes £8k plus VAT recently for a simple case…
Despite the slowdown, demand for holiday lets and second homes remains strong
We are continuing to see a great deal of demand for buyers looking for second homes and holiday lets. With foreign travel still looking difficult and this not looking set to change in longer term with some countries around the world really struggling and the UK set to be free of restrictions shortly, more affluent buyers are purchasing property, and this will continue to drive prices up in rural and coastal areas.
Further criteria changes increasing borrowers affordability
Barclays are the latest mainstream lender to make significant criteria changes that improves borrower’s affordability, with the proportion of bonus income that they will consider increasing from 25% to 50%. This is indicative of the confidence lenders have in the housing market currently and the majority of lenders are returning to pre-pandemic lending criteria with the expectation if a business survived the pandemic and are paying bonuses then these can be relied upon into the future.