Are we seeing a growing demand for shorter-term mortgage deals?
Figures released this week by Twenty7tec, would say YES and they have the numbers to back it up! We are already subscribed to this platform and we rely on it to find us the BEST available deals for our clients.
Twenty7tech also provides a full market report every month, which gives insight into the market as a whole, which is useful as an independent adviser and sheds light on the activity across the industry and UK.
In April, they reported record-breaking numbers, which is very encouraging, especially when you read the headlines from the Governor of the Bank of England. In his most recent speech at the Reykjavik Economic Conference in Iceland, he likens monetary policy to the weather and as a small island in the North Atlantic, he refers to some of the strong winds and rains that can hit us and then how the big global events like tectonic plates moving or volcanic eruptions, can have a seismic impact on the UK as we have seen in recent weeks with huge economic shocks have affected our economy. He is building resilience into the monetary policy and with that in mind, we saw another cut in interest rates last week to 4.25% and relief for many that the mortgage rates are still falling and the impact of mortgages coming to the end of their terms is starting to soften.
We are feeling our customers selecting shorter terms on their mortgages, with an emphasis back on 2-3 year mortgage terms rather than the longer periods of 5 years, which we experienced while interest rates were so low.
Twenty7tech also reported on London first time buyer prices reaching £517,000 the highest ever reported, we might feel the pressure in some areas of Berkshire, like Windsor and Eton, especially on the River, but these are average first time prices in London, which means average couple salaries have also hit an all-time high at £95,127, their average borrowing is now £364,718, with deposits of over £150,000 required, no wonder the average age of a first time buyer in London is 36 and 8 months in comparison to the UK at 32 years old.
I bought my first property at 25, imagine having to wait another 11 years!
If you are looking for a first-time mortgage or you’re coming up to that time when you need to be thinking about your mortgage renewal, we can start to lock in rates as early as 6 months in advance, so give us a call and let’s see what the best rate is for you.
