Mortgage market is more robust than many thought

Mortgage market is more robust than many thought

Observers of the UK house buying market could be forgiven for thinking that 2020 could be one of its worst years, but the country’s mortgage market is more robust than many thought.

In March and April 2020 there were predictions of a housing market meltdown. Job losses across the industry, the closure of many mortgage brokers and price drops across the board were amongst the downbeat predictions.

Logic Wealth Planning adapted, just as most other advisers did. We had to. People still wanted to buy new homes and find the right mortgage for their circumstances.

However, how everyone interacted changed. There was very little – if any – face to face contact. Offices were closed, but mortgage advisers and support staff worked from home.

New ways to communicate emerged and clients still managed to get the independent advice they needed.

Crucially, during the early phase of lockdown a desire and demand to find new homes steadily grew.    

Mortgage services ready for a new era   

If you have viewed a property in the last few months you’ll know that things have changed. Between potential buyer visits, whether for sales or rentals, properties have been thoroughly sanitised.

That has meant buyers and sellers can carry on with confidence.

The same is true at adviser offices. Simple but effective safety and hygiene procedures have been put in place so that existing client work and new enquiries can be handled and processed.  

What the challenges of 2020 have taught us vary from one person to the next, and from business to business.

We know we need to plan more, give ourselves options and be prepared to change and adapt as required.

The mortgage market has done that.

Now, as positive news about vaccines trickles through, people are planning for 2021.

The Spring home buying surge is likely to happen, just as it does from year to year. Thankfully, this year has surprised many and the industry has emerged stronger and ready for future opportunities.   

Stamp Duty always a factor   

For buyers in England, in July the Chancellor created a much-needed tax break by increasing the stamp duty threshold from £125,000 to £500,000.

Crucially, this “holiday” runs until 31 March 2021.

The measure helped to boost mortgage applications in the second half of 2020 and looks set to assist home buyers through the Spring house hunting season. 

It has helped buyers looking at homes in and around the UK average house value (currently about £245,000 according the Land Registry). It has also encouraged buyers in the higher price bracket who will also be making significant savings.

Start the mortgage hunt now!  

Christmas and Covid dominate most conversations as we head towards the end of the year. Before you know it we’ll be celebrating the New Year and looking ahead with renewed optimism.

Finding the right mortgage is never a quick decision. There are many factors to consider. As independent wealth planners, we always ensure that such major decisions are part of a wider financial planning exercise.

We help you plan cash flow, assess your current position and try to understand what you and your family want now and in the future.   

Please call us on 0808 1234 321 or email to start the discussion about finding the best mortgage for your next house move.

Your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it.

* Logic Wealth Planning provides independent financial advice in Manchester, Bury, Rochdale, Cheshire, and the surrounding area, but not limited to the region.