On a monthly basis, the number of home loan approvals rose between December and January for the first time in 12 years. A total of 52,619 house purchase loans were approved in December, 24 per cent below January approvals. Brian McCulley our Financial Services Manager comments “ The sudden rise can be attributed to lenders building their mortgage pipelines with a rush of approvals before the Mortgage Market Review comes into effect in April, when tighter affordability checks will be enforced. Falling unemployment has also boosted demand for homes, with borrowers looking to take advantage of low fixed-rate deals before base rate rises. “
“January was something of an anomaly in the mortgage market. We normally witness a January slowdown in the mortgage market, in which borrowers choose to pay down Christmas debt rather than invest in property, but this year both banks and buyers have continued full steam ahead. “
Demand is strong from the top to the bottom of the market. First-time buyers are keen to lock into cheap deals and get on the ladder, especially with recent talk around a potential base-rate rise . And lenders are actively trying to keep volume high, to get business through the door before MMR puts a cap on the volumes they can process. Lenders are welcoming high LTV borrowers back to the market, which has opened the flood gates to first-time buyers. Help to Buy and the LIFT Scheme is encouraging renters to get onto the property ladder.
However The Mortgage Market Review could make things a more difficult for these buyers to achieve their goals……
The Mortgage Market Review ( MMR) comes into force in April this year with all lenders having to implement tighter affordability calculators which in turn will reduce the amount a purchaser can borrow. This change which promotes responsible lending although very welcome and long overdue, will make it more difficult for any borrower and continues to highlight the need for any potential purchaser or a remortgage client to seek the professional advice of a whole of the market independent mortgage adviser.
Our award winning mortgage team here at Next Home have been working very closely with all the High Street lenders to ensure a smooth transition for our clients over the next few months. We are ideally placed to source the best deal for our clients and ensure it fits the industry’s new criteria.
We offer all our clients
- A true whole of the market sourcing
- A fully advised process
- Preferential rates from High St lenders
- A unique after sales advice service
- Weekend and evening appointments
- LIFT Scheme full packaging and advice
- Help To buy mortgages
Call us now on 01738 45 90 69 and let us guide you through.