Posted: 06 / 08 / 2020
It is fair to say that the mortgage market has been through a rollercoaster few weeks and months, with lockdown severely impacting the way that we do business.
Never before has the government shut down the housing market, but we all know that is what happened. The post-election ‘Boris Bounce’ to the housing market was in full swing right up until the end of March, and all through lockdown there was huge pressure and pent-up demand from people looking to move house but frustrated in trying to do so.
All this having been said, the House Market was one of the very first to reopen and since mid to late May the market has shot out of the gates. It’s been a frantic few weeks for brokers and lenders alike and what feels like some normality has resumed.
But the goal posts have moved.
For First Time Buyers and Home Movers alike we are pretty much in a 15% deposit market. Very few lenders are operating with a 10% deposit and those that do, do so with a heavy margin, very scarce availability or with a shopping list of requirements to make you wince.
Specialist advice for self employed customers has never been more important; lenders are asking more questions and if your business has been negatively affected by COVID-19 then shy lenders will become even more so.
The great news is that with a 15% deposit the First Time Buyer and House Mover market is back to normal and as lenders start to occupy their offices again there is hope that smaller deposit mortgages will return.
Even better news is the Stamp Duty holiday for purchases up to £500,000.
This is bringing joy to the market and encouraging buy-to-let investors to buy right now. This relief applies for investors buying in the name of a limited company or in their own names.
Not only investors, there are a wave of new properties coming on the market for sale for Homeowners looking to upsize and take advantage of the tax holiday and we are seeing huge activity in London for people upsizing.
Article by Peter Clarkson, Mortgage Adviser at Sedulo