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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:
Rates falling across the board at higher LTV’s and a return to 5 x income at 90%
This last week we have seen mainstream lenders including Barclays and Virgin reduce their rates at 90% LTV and this puts downward pressure on rates being offered in the 85 and 80% LTV bracket and so we can expect these to be reviewed too in the coming weeks. It tends to be case that lenders move as a pack and as some decrease their rates, especially large mainstream lenders, others will follow so we believe that there will be a slow reduction in the cost of borrowing at high LTVs over the next 2 months… Moreover, we have seen Accord return to 5 x income (over £60k household income) even up to 90% LTV, another sign of lenders confidence in the outlook for the property market despite the pandemic.
Busy start to the New Year despite full National lockdown
While we are not facing the extremely high levels of demand of late summer last year, given the situation, demand remains strong and we are continuing to see a high number of enquiries as well as cases moving forward, and new offers being accepted. It appears that people are used to life under lockdown now, and with the market still open it is not stopping the appetite for people looking to move, especially with trends such as working from home and relocation for more space now entrenched.
Expat rush before the SDLT deadline and additional 2%
It seems that the certainty created through the Brexit deal has led to a surge in enquiries from overseas buyers, both expats and foreign nationals looking to purchase UK property and thus requiring finance.