Efforts to make the homebuying process easier are on the cards

Efforts to make the homebuying process easier are on the cards, but for most people that starts with knowing what you can borrow says Enzo Mora CEO and founder of The Mortgage Brain.

Hot on the heels of new research by Santander that around half a million home sales a year collapse at the eye-watering cost of £1.5 billion annually, the government has just announced a major reform of the house-buying process. The proposals include more upfront information available to the buyer so there are no nasty surprises further down the line which can cause a failed sale, binding contracts after a price has been agreed and more transparency on the track record of estate agents and conveyancers with a Code of Practice thrown in for good measure to drive up standards and rebuild trust in the industry. While we agree with all these measures, implementation is another matter and surprisingly there is no mention of making sure you can afford the property you’re intending to buy, which is where we come in!

Belt and braces approach pays

Mortgages brokers like The Mortgage Brain are strictly regulated so you can be sure that we meet all the rules in the book when it comes to finding our customers a mortgage. We have to be transparent and fully compliant with financial regulations and in the highly unlikely event of us not being able to find you a mortgage we have to tell you if the risk is too great for lenders. However, we’ll also advise on ways to improve your finances so you can try again when you are in a better position and we’ll keep in touch if you would like us to. Which brings me on to another point. Some of our customers come to us with a very low opinion of their finances, believing much of the overplayed doom and gloom in the press. Lower deposits are not a barrier to getting on the ladder and neither is being self-employed, there are even specialist lenders who will consider loans to customers with low credit ratings. Over recent months, many high street lenders have adjusted salary multiples and eased stress testing which has improved affordability. We have access to all these deals often exclusively and can still find competitive options. Whatever your circumstances we’ll take a look and give you excellent expert advice with absolutely no pressure to accept a mortgage.

Savvy first-time buyers seek forever homes

New mortgage data from Barclays Property Insights reveals an increasing popularity of semi-detached properties, as first-time buyers report a greater appetite for “forever homes”. Millennial homeowners, aged 28 to 43, are the most likely age-group to prioritise extra space – over a fifth (22 per cent) say they bought a property with more bedrooms than they currently need, to avoid upsizing later. This compares to just 13 per cent across all ages. The data showed that three-bedroom homes were the most popular choice for properties, making up 46.4 per cent of all purchases in August. Thinking about their costs in the near term these buyers are opting for longer mortgages to reduce their monthly payments.

Love thy neighbour

I love a recent story from Rightmove on how annoying neighbours can be with the top red flags being next door asking for you for your Wi-Fi password, overflowing bins and parking pinchers. But there was some good news, 64% of Brits say they’ve never had any sort of dispute with their neighbours. Maybe we need a bit of regulation – Google reviews of neighbours could be just around the corner!