Since Monday 11th May when Prime Minister, Boris Johnson, announced that the property sector would re-open, the mortgage market has seen a significant increase in property sales despite the lockdown impact.
According to The Independent, mortgage approvals are more than 4 per cent higher in 2020 than compared to December 2019 with only 67,000 applications. Interestingly, January alone oversaw an impressive 71,000 pending mortgage applications, which has proven to have exceeded all market predictions for 2020 given the current covid-19 climate. The Independent has labelled it as “the best market conditions since the EU Referendum” (The Independent, 2020).
Tom Salcey, Director of Salcey Mortgages, commented: “ The mortgage market is well and truly back up and running with 1000’s of products available. With an ever-growing range of lenders available, now is a great time to see what options you have if you are looking to buy a new home. The Help to Buy equity loan and shared ownership schemes continue to be popular with many high street banks and building societies offering these types of mortgages. More choice means more options and being accepted for the mortgage you need.
The Government backed Help to Buy Equity Loan Scheme only requires a 5% deposit, available to first-time buyers and existing homeowners, on the purchase of a new home – Yes, this does have to be a ‘new build’ home. The Government will loan you up to 20% of the property’s cost, meaning you will only need a 75% mortgage after your 5% cash deposit.
With the mortgage market now busier than ever, it seems the perfect opportunity to find the home you deserve at an affordable price especially since the Help To Buy Scheme will be changing significantly as of April 2021. It will be restricted to first-time buyers only and will include regional price caps on new build properties across the country. So, if you are an existing homeowner or a first-time buyer looking to get the most out of your money, The Help To Buy Scheme may be the route for you.
At JW Developing Solutions, we are pleased to be working in a busy and positive market place and engaging with many buyers in varying situations across our developments. Buyers wishing to view properties at this time are financially qualified by our recommended Mortgage Advisory Services prior to arriving for their appointments. We are pleased to report that feedback in this regard has been excellent with many buyers being made aware of both their affordability levels and potential choice of Lenders along with having any questions they may have answered. This process overall has assisted purchasers greatly and enabled them to make their home buying decisions more effectively and efficiently.