Latest mortgage news this August 2017
August has been a busy month in the mortgage world. All the latest news, rates and need-to-knows from our consumer journalist Christine Toner
August 17, 2017
From first time buyers making a come back to downsizers wondering where to go and new builds falling into favour, it’s been a busy ol’ fortnight in the mortgage world. Here’s the latest…
The return of the first time buyer
They’re the so called life blood of the market and it seems they’re back with a bang. According to latest figures from the UK Finance first time buyers borrowed £5.9 billion in June – 26% more than in the previous month and 9% higher than June 2016.
Paul Smee, head of mortgages at UK Finance said June was particularly busy for the housing sector.
He said: “June’s figures show a busy month in the mortgage market, with home-movers having their highest monthly activity levels for over a year and an especially high number of loans for first time buyers.”
If you’re a first time buyer and you’re not sure where to start when buying a house take a look at our guide to First Time Buyer Mortgages.
Nowhere to go
There’s a lack of family homes, they say. Older homeowners should be downsizing, they say. What they don’t say of course is that there is a clear lack of properties for those homeowners to actually move to. Indeed, a new report by equity release provider Key Partnerships found 56% of estate agents believe there is a shortage of properties suitable for downsizers while for older buyers with mobility problems the situation is even worse with 68% of agents say there are not enough homes for these buyers.
Looking to sell your current property to move elsewhere? Read our Step by Step Guide to Selling your Home
New build? No problem
There was a time when borrowers looking to buy a new build property would struggle with mortgage finance. Lenders weren’t keen on the properties given the fact they essentially drop in value as soon as they’re bought but many are now more accepting of the properties and this week the Principality building society showed just how accepting it is by enhancing its new build range. The lender will now lend up to 90% loan to value (LTV) on new build properties, up from 85%. Amazing when you think of the problems we’ve seen with new builds in recent months.
If you’re purchasing a newly built home check out our Top Tips for Buying a New Build
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