Activity to soar this summer for homeowners in Southport

What you need to know about the 95% mortgage guarantee scheme

 

A new mortgage guarantee scheme was announced this spring, with the goal being to help first-time buyers and aspiring home movers purchase a home with a smaller deposit.

 

The initiative, which will be available for new mortgages up to 31st December 2022, is intended to increase the availability of mortgages on new or existing properties for those with small deposits. 

 

This comes after a plummet in 95% mortgages made available last year, as lenders lost confidence in the UK's financial stability due to the pandemic.

 

How will it work?

 

It is based on the Help to Buy mortgage guarantee scheme that ran from October 2013 to December 2016, which backed mortgages for 104,736 purchases – 2.7% of all those in the UK.

  

The average property bought through the scheme was worth £159,170, compared to an average UK house price of £223,000.

 

In terms of restrictions with the latest initiative, only first-time buyers or those moving homes are eligible to apply, not those wishing to buy second homes or buy-to-let properties.

 

First-time buyers and home-movers form a vital cog in the economy and housing market, so government support will play a crucial role in restoring the balance.

   

To get assistance on your mortgage needs, get in touch today, or browse our latest properties to see what's available in your area.

 

 

 

One in every 50 homes has been sold in 2021

 

The housing market has had its fair share of ups and downs over the past year. And yet, from what we've seen so far of 2021, there are some incredible successes to take note of.

 

Figures from Zoopla showcase that within the first 15 weeks of this year, £149 billion worth of homes were sold.

 

In comparison to the same periods for 2019 and 2020, this amounted to double the value typically recorded, and meant that between January 1st and April 15th, one in every 50 properties were sold.

 

To put this into perspective, in an average year, it would take until the end of June to see these kinds of results.

 

When schools reopened six weeks ago, we began to see a rise in property listings, which suggests that as the country's home-schooling plans came to an end, more households could focus on preparing for their next sale or purchase!

 

There is currently an imbalance between supply and demand, making it an ideal time to sell.

 

It’s worth noting that in the near term, the market for family homes – for example – will start to ease as homeowners become more comfortable with opening up their homes for viewing purposes.

 

Alongside this, the 95% mortgage guarantee scheme will play a prominent role in bringing in more demand from first-time buyers without having to replace supply.

 

Are you thinking about getting started on your property journey? Please do not hesitate to contact a member of our team today.

 

 

 

 

Majority of transactions since May 2020 backed by mortgages

 

Aside from the market boost provided by the extended stamp duty holiday, it's clear that the property market is seeing high levels of activity due to the continued low rates of borrowing for mortgages.

 

Since the market reopened in May 2020, mortgages fuelled 70% of property transactions in the UK.*

 

Whilst the stamp duty savings have been a tremendous help to many, the ability to secure finance at a much lower rate of interest than previously before has brought a massive boost to market sentiment.

 

Recent data showed that 270,785 of the 387,667 properties sold have seen the buyer backed by a mortgage, however, there are some regional differences.

 

- In London, 80% of all sales came from homebuyers with a mortgage

 

- For the East of England and the West Midlands, this accounted for 72% of sales

 

- In the South East and East Midlands it was 71%

 

- The South West had the most cash buyers, with just 64% buying via a mortgage

 

Some lenders around the UK have started tightening their belts with their lending criteria, potentially making it harder for those with a less secure financial background to be accepted.

 

But this isn’t likely to impact the ratio of mortgage-financed buyers in regard to those buying with cash.

 

The new mortgage guarantee scheme has also added incentive to more and more people enquiring about mortgages.

 

Encouraging lenders to offer 95% mortgages by taking on some of the risks involved, the government's scheme has proven successful so far, with over 78 fixed-rate 95% deals available right now, compared to five at the beginning of March.

 

Selecting the perfect professional advisor is so important.

 

For an introduction to Right Click Finance, who specialise in providing mortgage and protection advice, please contact us today or visit our website. 

  

 

*Enness Global Mortgages

 

Market boom leads to more sales and higher prices

 

The average UK property price has risen by 8.6%, which is roughly £20,000 in the past year. This is the highest annual rate since 2014 according to the Office for National Statistics.

 

Over the year, house prices in England increased to £268,000 (up by 8.7%), in Wales to £180,000 (up by 8.4%) and in Scotland to £162,000 (up by 8%).

 

The North West was the region that saw the highest annual growth in average house prices (11.9%), while London recorded the lowest positive growth (4.6%).

 

The figures reported by HM Revenue & Customs show that sales in March this year more than doubled from March in 2020.

 

It is estimated by HMRC that 190,980 sales took place in March 2021, a 202.3% increase in transactions compared with the previous year at 94,380.

 

Despite the tapering of the stamp duty holiday later this summer, it has been predicted within the sector that the high demand levels we're seeing will continue to propel activity and protect property prices.

 

The vaccine roll out and easing of lockdown restrictions have led to dramatic changes to consumer confidence within the UK, supporting this expectation for the housing market.

 

If you'd like to review your options buying or selling this year, talk to us today.