99% Mortgages – but this ain’t 1??
UK Moneyman Limited
Independent Mortgage Broker | Age 60+ Mortgage Specialist | Bridging Loans | Commercial Mortgages ????
The financial sections of last weekend’s newspaper were full of talk about the Government “launching” a 99% loan to value mortgage -? I guess that makes it Election year then! Just to clear this one up, for now, it’s just a rumour. The idea behind such a scheme is that it’s very difficult to save up a 5% deposit if you are in rented accommodation, so this would bring homeownership a bit closer to reality for those stuck in a “rent trap” wanting to buy. I’m all for helping people onto the property ladder if they can afford it, so anything that helps is fine by me. I would add though that it’s all well and good to bring more buyers to the market, but unless as a nation we look to build thousands more affordable homes then this measure on its own would be likely to increase property values even higher and potentially beyond the point of affordability for many.
?? Lower Fixed Rates – Is your mortgage deal up in the next 6 months?
In other news, we have seen some fixed-rate mortgages dip beneath 4% (albeit at low loan to value) so it looks likes now we are well past the peak of those 6%+ deals Lenders were offering last year. For anyone whose mortgages are due in the next 6 months, you should engage with us now to see what is out there for you.
Foreign National Mortgages
We also bring good news for foreign nationals looking to buy, with a relaxation on some of the lending criteria. If you have been residing in the UK for 2 years and have a 10% deposit, it’s worth a chat with us. Learn more about this news in our video below
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??Later Life Mortgages including Equity Release
The market for older borrowers continues to develop with new products landing in the early days of 2024. Customers’ demands for more flexibility in payments and long-term planning have led lenders to innovate and compete on more than interest rates. There are discounts available for consumers wanting to commit to monthly payments on lifetime mortgages (equity release ) and hybrid products which comprise an initial period of mandatory monthly payments before reverting to an optional payment product at retirement. The scope of using more conventional lending also continues to improve for those clients who still meet lender affordability requirements in later life meaning that we start the year with more choices than ever before meaning that it is more important than ever for clients to seek advice from a firm which takes a truly holistic approach to older borrowers’ needs.
↗?Increased Confidence Levels
It’s been an exceptionally busy start to 2024 and the confidence is certainly there in the market again. The pent-up demand has been well and truly unleashed, all we need now is some motivated sellers and I can see a very positive period for the property sector over the coming months.