Written by: Anna Smith, Real Estate Analyst
The availability of low-deposit mortgages has reached the highest levels since the financial crisis of 2008, based on recent data. Moneyfacts revealed that there are now more options for buyers looking to secure a mortgage with a deposit as low as 5% or 10%. This increase in choice is particularly beneficial for first-time buyers, despite the fact that house prices and mortgage rates have been on the rise over the past 17 years.
Buyers are now faced with a competitive market where homes are typically sold just over a month after being listed, according to figures from Zoopla. In the UK, the housing market has remained relatively stable, but uncertainty surrounding interest rates and changes in stamp duty regulations in England and Northern Ireland are factors buyers need to consider.
Two years ago, potential buyers offering a 5% deposit had access to 204 mortgage options. Today, that number has more than doubled to 442. Similarly, borrowers able to provide a 10% deposit now have 845 products to choose from, up from 684 in April 2023. However, despite the increase in choices, mortgage rates for those with lower deposits remain well above 5%. Rachel Springall from Moneyfacts mentioned that while the increase in mortgage availability is positive, there is still room for improvement in terms of deposit requirements and rates.
In addition to securing a mortgage, buyers also need to act swiftly when it comes to finding a home. Data from Zoopla indicates that homes in England and Wales spend an average of 36 days on the market before a sale is finalized. Sales tend to be completed within two months of listing, with an additional four to six months needed to finalize the transaction. The speed of sale varies across regions, with homes in northern England generally selling faster than those in the south. Richard Donnell from Zoopla advises sellers to set realistic asking prices to ensure a smooth sales process, especially in a market where buyers have more choices compared to a year ago
Read the full article from The BBC here: Read More
