Lower Rates and Higher Confidence for Homebuyers

Enzo Mora CEO and founder of The Mortgage Brain says there’s good news for first time buyers looking to leap on the ladder this summer as well as buyers hoping for lower interest rates.

We’re delighted to report that Nationwide has increased the maximum loan to value (LTV) for buyers looking at purchasing a new build house to 95% or a flat to 85%. You can be a first-time buyer or home mover to qualify and the lender is also extending their offer period from six to nine months on new build homes giving peace of mind to applicants that their offer will still be valid if the construction is delayed. We have a specialist new build mortgage team who work with the UK’s leading housebuilders to find you the best mortgage, so look out for our friendly faces when you next visit a development.

Steady as she goes

Halifax reports that the UK housing market remained steady in June and is resilient with mortgage approvals and property transactions both picking up following the spring stamp duty changes. Key reasons for this is that wages are still rising, easing pressure on affordability and interest rates have stabilised meaning movers have more confidence to plan ahead. A more flexible approach to affordability assessments has seen Halifax helping 3,000 buyers, including more than 1,000 first-time buyers access a mortgage they wouldn’t have qualified for before. It says two more rate cuts are expected by the end of the year while the average rate on newly drawn mortgages is now at its lowest since 2023.

Head first then heart

Research from Santander UK shows that the average lifespan of a first home is just four and a half years with a quarter of homeowners saying they feel no emotional attachment to the property, seeing it more as a stepping stone to bigger and better things. And 67% of these buyers purchase in neighbourhoods they had never visited before, compromising on space and location due to a lack of available or affordable options in their preferred locations, which are big factors for moving on so quickly. In contrast homeowners stayed put for eight years in their second or third homes with a surprising 20% of Brits aged over 80 still living in their first home. Our customers often ask if it’s possible to port your mortgage to your next property and generally it is but we can run through your individual options.

Who wants to be a millionaire?

Rightmove has crunched the numbers on the value of our homes and revealed that the number of homes for sale priced at one million pounds or more has doubled since pre-pandemic levels in 2019. As expected, London has seen the largest number of these million pound homes for sale but Cornwall has seen the biggest increase more than tripling in six years. It’s hard for anyone starting out on the ladder to imagine that kind of appreciation and while it can happen, being able to afford a mortgage now is more important and that’s where we come in. We really get to know our customers so we can find you the best deals whether your property costs £150,000 or £1.5m as you work your way up the ladder.