How will Labour affect your mortgage? ??
UK Moneyman Limited
Independent Mortgage Broker | Age 60+ Mortgage Specialist | Bridging Loans | Commercial Mortgages ????
??? What does a Labour Government mean for the Housing Market?
As we know, the one thing the property market can't withstand is uncertainty and, as such, during an Election campaign we normally see market activity fall off a cliff. Interestingly there has barely been a drop-off in enquiry numbers during the 2024 Election and I think that is because there was so little uncertainty from the word go about the outcome. Also, there was really so little difference between the two major parties I suppose there was an assumption that there may be very little change after all was said and done.
The biggest change for First Time Buyers looks to be that the Stamp Duty exemption on properties valued up to ￡425,000 is due to be returned back to normal. This was due to reduce in April 2025, but the Conservatives had said they would extend this in its manifesto. However, Labour have said it will go back to ￡300,000. If you are a First Time Buyer who could be affected by this change you might want to think about accelerating your home buying plans. To some extent, every home buyer is due to be affected because the standard Stamp Duty threshold is poised to revert back to ￡125,000 from ￡250,000.
Labour's manifesto reminded us (as if we needed reminding) that we face a chronic shortage of homes leaving "millions unable to plan their lives, start families, or build a future for themselves and their kids". This is correct, but seeing as we haven't built the required 300,000 new homes in a single year since 1977, it is a national problem not just a party political one.
Labour's plan involves building homes on "grey belt" land that is land currently designated as "green belt", when it is in fact wasteland such as disused petrol stations and car parks. They plan to build 1.5m million new homes over the next 5 years, with half of these being classified as affordable housing. It's an ambitious target, but at least there IS a target as the 300,000 was diluted to being just a "guideline" under the last Government.
It would be great for our Economy if we can get Britain building again, but there is another immediate challenge in terms of who will actually build them. We are down to 42,000 bricklayers in the UK now, 33,000 short of the number that would be needed to hit the target according to the National Housebuilding Council. This presents an opportunity for our younger generation because the demand is there for sure.
I think we may also end up hearing more about the Right to Buy scheme in due course. This was a defining policy of the Thatcher years and whilst the last Labour Government stopped short of banning it, they severely curtailed the discounts offered by the Local Authorities. Don't be surprised if this rears its head again and if so it might be a little awkward for Angela Rayner!
On a final positive note it might not feel quite like 1997, but I am hopeful of at least a little bounce in the market now it's all over. There will be some people who have put plans on hold so that pent-up demand may now be released and if we get a base rate cut in August then that could be enough for a strong finish to 2024. During the 6 week election campaign, we have already seen some mortgage lenders reduce their fixed rates.
?? Mortgage Deal Ending Soon?
If your mortgage deal is ending before 31st December 2024,?now is the ideal time to get in touch so that we can explore your remortgage options.
We’ll compare what deals your current lender is offering alongside what is available elsewhere to recommend the best solution.? It’s a free, no-obligation review.?
Also, your remortgage period presents a good opportunity for you to make changes, popular amendments include:?
?? Age 60+ Mortgage Options
We're receiving a lot of enquiries from customers over the age of 60 looking to explore their mortgage options for one reason or another.
We are proud to be a ‘one stop shop’ for all types of age 60+ mortgages.? Here are the main areas we can help you with:
There are 3 main mortgage types that are available to those in their 60s, 70s, 80s and above. These are:
1. Regular mortgage products?- either repayment or interest only, which nowadays can run to age 90+.
2. Retirement interest only mortgages, which do not have an end date.
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3. Lifetime mortgages, often called equity release - these do not have an end date and you have a lot of choice in how you make payments
The great news is that we can explore all 3 options for you and recommend the best one for your personal situation. Please feel free to click the button below to explore your options.
?? Bridging Loans (Fast Short-Term Finance)
We are now offering Bridging Loans in-house as a short-term lending solution to our customers.
Bridging loans are a very flexible product and can be used to help both residential customers and investors. Typically, funds can be received within a couple of weeks, so they are a great product if time is critical.
Here are some of the reasons where a bridging loan could help:
Please get in touch today if you would like to talk about your personal situation.
?? Independent Financial Advice
Quite often people will have various pension pots scattered around the place without any clear idea about how much income they can expect in retirement or which funds their money is invested in.
Our trusted referral partner,?UK Financial Planning Ltd can help by gathering all the relevant information from the various providers and offering advice on how to plan your financial future. They can also help those people interested in investing some of their savings and owners of small businesses looking to reduce their tax liabilities. If you would like a no-obligation initial chat with a financial advisor, simply click on the link below to arrange a convenient time and they will be happy to help.
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Malcolm Davidson
Managing Director @ UK Moneyman Ltd.
0333 412 2222