First-Time Buyers And Remortgagers Drive Housing Market
RECORD LOW MORTGAGE RATES HAVE PERSUADED FIRST-TIME BUYERS AND THOSE REMORTGAGING TO TAKE THE PLUNGE AS THE NUMBER OF MORTGAGES APPROVED BY BRITISH BANKS REACHED A FIVE-MONTH HIGH IN JULY. THIS WAS A 3 PER CENT INCREASE ON THE PREVIOUS MONTH, ACCORDING TO TRADE BODY UK FINANCE.
First-time buyer numbers continue to be strong, which is good for the overall health of the housing market. This is down to a combination of lenders offering competitive rates at high loan-to-values, along with innovative products coming to market – enabling parents to help their children onto the housing ladder without handing over substantial sums.
Remortgaging activity is also brisk as borrowers take advantage of ultra-cheap mortgage rates offered by lenders keen to lend. While the threat of an interest rate rise still isn’t imminent, many borrowers are locking into cheap fixes, particularly over two and five years, while they can.
While there are fewer transactions of £2m-plus properties, the upside is that the weakness of sterling continues to make property cheaper for international buyers in the prime markets.