HOUSING MARKET & MORTGAGES

Mortgages-2

The Market. Mortgages. Finances. Help to Buy. It’s all a bit strange at the moment but don’t panic! The details below might help sift through some of it!

Housing Market
‘UK house prices see highest growth in six years in 2020’ ‘UK house prices climbed 7.5% in 2020, the highest growth rate for six years, building society Nationwide found.’
These are all headlines taken from reliable sources such as the BBC, Zoopla, Rightmove and the Negotiator and we are seeing a lot of these headlines being thrown around the market. The numbers speak for themselves.
In the South East, according to Zoopla, the average property price stood at £416,318 in January 2021 which is an increase of 2.32% since October 2020 but more importantly an increase of 7.22% in the last 12 months. This now means homes in the region have apartments at an average price of £240,787 and a terraced house at £307,564.
Rightmove have investigated the Thanet area specifically. According to the data they have published, we had an overall average price of £271,830 over the last year. For an apartment the average is £164,921, semi-detached home an average of £292,003 and finally for a terraced property an average of £237,570.
Overall, sold prices in Thanet over the last 12 months were up by 2% on the previous year and 5% up on the 2018 peak of £258,557. This is all very encouraging news!

Mortgages
We were lucky enough to have an opportunity to speak with an independent mortgage advisor who gave us insight into the current mortgage market!
The overall consensus is that the market is running smoothly compared with the first lockdown when most lenders fell months behind. Three quarters of lenders are doing incredibly well with processing times and the others following closely at their heels which is fantastic news for anyone looking to purchase a new property now or in the near Future!
The independent advisor also explained that rates are low and the long-term forecasts that are being released at the moment are suggesting these rates should stay low, which is brilliant news for all purchasers that need mortgages!
Recently there has been an upturn in the number of products on the market with a number of lenders increasing their loan to values to 90% which helps keep the deposit requirement low.
When we spoke to the advisor, we asked if there was any advice they would be able to share with potential buyers who are looking to purchase with a mortgage. Their answer was always talk to a qualified advisor to ensure you get the best deal for your circumstances. Even with everything running smoothly an advisor does this job day in day out and will know the best route for you to take. Even if you end up not using the advisor you spoke to, their knowledge will help you make the best decision for you.

Help to Buy
Help to Buy is changing as of the 1st of April this year. The old system will come to an end and the new one will take over.
There are two main changes in the newest Help to Buy Scheme. The first one is the property price. It is now going to be capped regionally. For us here in the South East, the cap is £437,600 meaning the scheme will only apply if you are purchasing a property at £437,600 or less.
The second change is who is eligible for the new scheme. Previously the scheme was open to anyone who was purchasing a new build property up to the value of £600,000. However, they are now changing the scheme to allow only first-time buyers to use it when purchasing a new build home. The government wants to make sure the scheme is helping the people who will benefit most whilst changing generation rent to generation buy!
Many of the original characteristics are staying. The loan will still be interest free for the first 5 years and you will still need at least a 5% deposit available! You can either see the help to buy scheme online or ideally speak to a mortgage advisor who can advise you on every aspect and check you qualify!

FUTURE HOMES DEVELOPMENTS: