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This is our take on recent news 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.
At a glance:
The war on rates begins now confidence returns to the market
While rates are very low for some mortgage types, these are reserved for the lowest risk borrowers, in other words those with large deposits or large amounts of equity and the ability to borrow at lower income multiples. However, with the return of mainstream lenders to the 90% market, it was only a matter of time before competition on rates ensued and there is now a downward trend in this part of the market, with major lenders such as Nationwide and TSB beginning to make cuts, we expect others to follow as lender pitch for these premium rates before they fall.
Why we believe London property will boom in the New Year
There has been a paradigm shift in the property market this year and the home has become, amongst other things, an office, school, and the base for leisure activities… all of which led to people asking big questions about where they live and whether it fulfils their needs. In a lot of cases people answered that question with an emphatic no, and the purchase market has since boomed, helped by the SDLT holiday. This left several people, including us, wondering if cities like London would change in the long term as we saw many clients buying in the countryside to increase their access to space. This has now slowed down, and it was possibly the case that this just pushed moves that were already on the cards forward. The draw of cities is the nexus of labour, social and cultural factors and people have missed out a great deal on the latter two this past year. With the advent of the vaccine and a slow return to normality we believe we will see London property boom as people want to be close to the action again and while the countryside will work for some people it will not for others…