If you are looking to buy property, especially if you are a first-time buyer, you should have an overview of this market.
Quick facts:
• Over the past 16 years, the number of mortgage products available with a 10% down payment has increased.
• The number of deals available with a 5% down payment is at its highest in the past two years
• The election has not stopped London property owners from putting their homes on the market.
Inflation Update
There was great news on inflation last week, with inflation hitting the government's target of 2%. But it wasn't surprising to see the Bank of England keep the base rate unchanged at 5.25% for the duration of the election. If you need to move, don't let it hold you back – there are good reasons in the mortgage industry to get started now. Here's why:
• Lenders are optimistic: NatWest, HSBC, Coutts and Atom Bank have all significantly cut mortgage rates, meaning there are more affordable options available.
• More options with a smaller down payment. Looking for a mortgage with a smaller down payment? Our partner mortgage broker, Alexander Hall, reports that the options available with a 10% down payment are the highest they've been in 16 years. And the availability of options with a 5% down payment is the highest it's been in two years. So even with a smaller down payment, more properties may be within your budget.
Even if you are a first-time buyer, it's okay.
Buying property for the first time can be daunting, but Foxtons and Alexander Hall are here to help – here are some insider tips.
“Too often we speak to clients who don't understand what a mortgage adviser does. They assume they can get the same information directly from the bank, but they don't understand what's possible as there are so many options available to them that banks don't offer.”
~Stephanie Dailey, Director of Partnerships, Alexander Hall
• Expert advice makes the difference: An independent mortgage adviser like Alexander Hall can open up a world of options you may not have known about – from 99% LTV mortgages (with just a 1% down payment) to co-borrower/sole trader deals, we can find what's right for you.
• Motivations to jump in: Rising rents and a desire for stability are driving first-time homebuyers into the market, a trend that Alexander Hall expects to continue as lenders offer more innovative solutions.
• Increased opportunities: Alexander Hall has seen an increase in 95% LTV deals that require only a 5% down payment, and we expect to see even more competitive rates in this area soon. Whatever your situation, schedule a free consultation and you may be surprised by the options available to you.
“Our own data shows that first-time homebuyer purchase applications are on the rise, and we expect this trend to continue as we see further innovation in first-time homebuyer affordability constraints throughout the year.”
~Stephanie Daly
News of the election is not slowing home sales either.
Read why buyers aren't changing their plans, even with the election looming.
We recently wrote an article about how 95% of home buyers aren't giving up because of an election. In that article, we looked at housing data and elections over the last 15 years. We found that most elections come at a time when the number of homes on the market is increasing. And the bigger news is that this number continues to grow after the election.
We're seeing the same trends so far with this election – an increasing number of homeowners are turning to Foxtons for their services, meaning sellers seem just as unfazed by the election as buyers, which is great news for your cause.
Make it happen
Whatever your goals with London property, we can help you get started:
• Discover opportunities in the mortgage market with a free consultation from Alexander Hall.
• Our experts can help you create a plan to successfully sell your property in this market – book your free Foxtons market assessment.
• To start your search for homes in London, tell us what you're looking for on My Foxtons or browse our homes for sale.
