Positivity in the housing market rises to post-crisis high

As the country emerges from a second national lockdown there are encouraging signs from the property market that should give welcome relief to buyers and sellers who might otherwise have been unnerved about the direction the industry might be taking. The positivity surrounding the market stems from two prominent reports, which have been released this week that point to a post-crisis high. The news will come as an encouraging sign for prospective purchasers of new homes at Highwood’s landmark development at North Stoneham Park to make their move now.

On Monday, 30^th November, the Bank of England revealed that mortgage approvals for house purchases had increased from 92,100 in September to 97,500 in October. This is the highest figure for mortgage approvals since September 2007.

The factors driving the rise stem from the stamp duty holiday that has been fuelling homebuyer demand since it was introduced in July for properties sold for under £500,000. With savings of up to £15,000 to be made, purchasers are continuing to try to secure their new homes and mortgages before the deadline comes into effect at the end of March next year – despite the Covid restrictions that have hampered much of normal life in 2020.

The Chancellor has not yet made any announcement the stamp duty holiday will be extended, but he is certainly under considerable pressure from economists and property experts to do so.

Great news for borrowers

More good news was announced yesterday when Moneyfacts, the money comparison experts, pointed to a dramatic rise in the number of low deposit mortgage deals that are now available. According to Moneyfacts, borrowers with a 10% deposit now have 80 90% loan-to-value (LTV) mortgage deals to choose from, up from 44 in September.

Alain Amos, Financial Services Director at Charters Financial Services, the appointed mortgage broker for Highwood’s North Stoneham Park development agrees the optimism in the mortgage lending market is very encouraging.

‘We’re seeing a number of 90% mortgage products proving attractive to buyers,’ he explains. ‘With the Nationwide leading the charge for high LTV products, others are sure to follow suit. Interest-only and buy-to-let mortgages are also seeing a resurgence following a NatWest decision to release a series of enhanced mortgage products with new affordability criteria taking effect. Rental income will not now be used to reach the minimum eligibility criteria of £25,000 per annum, but other sources of income, such as bonuses, will remain the same.

‘We’re also seeing rates coming down in terms of fixed-rate deals too. Currently our lowest rate for a two-year fixed product is just 1.09% and 1.39% for a five-year deal. In other news, the revised Help to Buy scheme is now open for business and we’ll be taking applications for this from 16^th December – buyers who won’t be eligible for the new scheme are advised to get their move to North Stoneham Park underway to avoid missing out before the 31^st March deadline.’