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.
‘The optimism in the mortgage lending market is very encouraging,’ commented Alain Amos, Financial Services Director at Charters Financial Services, the appointed mortgage broker for Highwood’s North Stoneham Park development. ‘We’re seeing a number of 90% mortgage products proving attractive to buyers and, with the Nationwide leading the charge for high LTV products, others will surely follow suit.
‘Likewise, interest-only and buy-to-let mortgages are 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 16th December – buyers who won’t be eligible for the new scheme are advised to get their move underway to avoid missing out before the 31st March deadline.’
With so many reasons to be cheerful when it comes to buying and selling houses right now, there seems little chance of the property market buoyancy abating. Indeed, according to Hometrack, the property market analysts, December 2020 looks set to be ‘the busiest pre-Christmas housing market for over a decade’.