As we navigate through the ever changing UK property market, several significant developments have unfolded since our last newsletter. Here’s what you need to know this week:
A Game-Changer for First-Time Buyers
In an exciting move for first-time buyers, Yorkshire Building Society has unveiled a new mortgage product that drastically lowers the barrier to home ownership.
With just a minimum £5,000 deposit, individuals can now aspire to own properties valued up to £500,000. Offered via Accord Mortgages, the lender’s intermediary branch, this innovative mortgage boasts a loan-to-value ratio of 97.5% for the typical £200,000 first-time buyer mortgage.
What this means is that, if your income is sufficient you could purchase a £500,000 property with just a 1% deposit of £5,000.
We are delighted to be able to offer this product through our mortgage brokers at Mortgages and Insurers Solutions.
UK Mortgage Approvals Soar to 17-Month High
The Bank of England reports that UK mortgage approvals in February surged to their highest level in 17 months, marking a significant uptick in housing market activity.
The bank recorded 60,400 approvals for house purchases in February, up from 56,100 in January, surpassing economists’ expectations. This rise is attributed to the decrease in borrowing costs observed since mid-last year, with the “effective” interest rate on newly drawn mortgages dropping to 4.9% – the lowest since August 2023.
Nationwide Reports a Slight Dip in House Prices
Despite the positive momentum in mortgage approvals, Nationwide has observed a 0.2% month-on-month decrease in house prices for March. However, the annual comparison paints a brighter picture, with house prices 1.6% higher than last March – the fastest annual increase since December 2022.
Notably, London continues to hold its position as the UK’s most expensive region for property.
Speak to our award winning mortgage brokers
Whether you’re considering entering the market or adjusting your investment portfolio, the current climate is ripe with potential.
Get in touch now on 0208 364 3444 alternatively click here to schedule a free consultation call. Be sure to ask about our Flexi-Lock service to ensure you can lock in the best rate.