Mortgages London | Mortgages in London

Posts Tagged ‘London Mortgage Brokers’

You’d be forgiven for being confused about the current state of the London housing market, with one London mortgage broker saying that the industry is experiencing a pre-election lull, and another claiming that the market hasn’t been this good since 2007. Where the confusion lies depends on what end of the market you are talking about.

The average homebuyer is applying for a mortgage of about £150,000 for a property that is around the £200,000 mark. This can buy a cosy family home in London, or a plush studio flat, depending on your circumstances, but generally a property of this value is within the reach of those with modest earnings. However, it is this demographic that are living to a tight budget, and with a possible variation in interest rates, their mortgage repayments could potentially be unaffordable. For this reason, it is the average homebuyer that is shying away from applying for a mortgage, and therefore creating a lull in the mortgage market.

In stark contrast, high net worth borrowers are applying in increasing numbers for mortgages in excess of £500,000, thus creating the fantastic mortgage boom – likened to 2007. It’s all about perspective. According to London mortgage brokers, the trend is due to a weak pound, and wealthy foreign investors are making the most of the opportunity to buy a property in City. There is a noticeable increase in sales of properties at the top end of the market, in particular properties worth in excess of £2m in desirable areas such as Hyde Park. It has been estimated that sales of this type of property has increased three fold during the first three months of this year.

It seems that for mortgage brokers specialising in the top end of the market, applications are coming in thick and fast, bringing job security and profits; but for those who are trading at the lower end, business is slowing considerably, and causing concern for some brokerages. It cannot be denied that the figures are generally looking good for London mortgage brokers, as there are more desirable properties in the city and the south east generally than elsewhere in the country, but the true state of the industry may paint a different picture altogether.