We’ve seen lots of changes over the past 12 months such as mortgages becoming harder to come by without a substantial deposit. This is due to mortgage companies needing to be more diligent and sensible with how the lend and who they lend to.
This has certainly been frustrating for many who were considering buying or were in the process of buying. This is because doing so became more difficult and more time consuming. Buyers had to provide more data, jump through more hoops and provide a bigger deposit to get mortgages.
However 2021 is looking better. Banks want and need to lend, and we have seen signs of things changing. We’re seeing favourable 75% LTV (Loan to Value) buy-to-let rates become more inviting for investors and substantially lower rates for higher deposits.
It has also been more positive for first-time buyers with more 90% mortgages becoming available. Along with this, the criteria to gain mortgages is beginning to become more favourable again.
Rates are not far behind where we were pre-COVID-19. This is great news for consumer confidence and the economy.
The housing market is such a huge sector, generating mass income for the government and link revenue to other sectors. As such, this is welcome news for everyone who will hope these positive changes continues throughout 2021.
10% Mortgage are Back
HSBC was one of the banks to follow suit in bringing back 10 percent mortgages this year, following Halifax, Coventry and Natwest.
This really is good news to buyers that have been set back, patient or do not have a lot of equity or savings available to put down a deposit.
It is also good news for Brokers and mortgage customers. With rates almost as low as March 2020, there is positive news in the air. Mortgages are opening back up to a wider audience.
All the estate agents I’m talking to keep saying they’re seeing more first-time buyers register in 2021. All these changes and the criteria relaxing a little shows that things are getting better. Plus, we’ve already registered more investors this year than in the last 2 months of 2020!
With this set to continue, 2021 looks like it could prove to be a stable property market after-all. The news of the stamp duty potentially being extended later this month could be the cherry on top and even more positive news for everyone!
If you’d like to discuss the different mortgage options available to investors, please get in touch.