Mortgages London | Mortgages in London

Posts Tagged ‘Mortgage Advice’

With property prices on the increase across the UK, the asking price of London homes is once again becoming out of reach of the average first time buyer. A combination of strict approval criteria and high deposits means that many would be home owners can no longer afford to buy a property in capital. It has been calculated that over the last 12 months the prices have risen by 10%, leaving savers seeking free mortgage advice from London lenders.

The majority of mortgage products available to first time buyers have an LTV cap of 75%, which means borrowers raising a deposit of 25%, which for an average priced London property would be in the region of £25,000. Obviously if the trend in rising house prices goes on as demand continues to outstrip supply, this figure is going to become higher and less attainable. Although there are more high LTV products coming on to the market, even the return of 95% LTVs, the large majority of these are not available to a first time investor.

There is good news though for those who are happy to relocate. The rapidly rising prices are not as dramatic in Scotland, with a rise of just 2.2%, although the wise investor would think twice about relocating to Northern Ireland, where house prices dropped by nearly 9%. Borrowers are advised to consult with an independent broker or mainstream lender to get free mortgage advice in what might be harsh times ahead for first timers blighted by mortgage applications that favour those who already have a home loan.

This year only 35% of loans were for first time investors, which is the lowest figure since late 2007; and as it is these purchasers that dictate the success of the property market, there are bound to be dramatic changes afoot to help those with a small deposit purchase a home in London. Whether it is a return to high LTV loans, introduction of government schemes or the decision to relocate that makes the difference, getting the right free mortgage advice could save you thousands in the future.

Some people find that it is difficult to get impartial free mortgage advice in London as all the brokers are associated with a building society or bank, and have nothing but selling a mortgage on their mind. As anyone can appreciate, obtaining a mortgage is one the biggest moments in adult life. It is a commitment akin to getting married or having children. It is therefore understandable that trust may be lacking when obtaining any type of free advice in London, or elsewhere.

London is a popular location for UK residents as it is culturally diverse, home to some of the most important businesses in the world and it has many beautiful properties to suit a vast array of budgets. With so many areas to choose from, it can therefore be a daunting task deciding to buy a property in the UK capital. Getting mortgage advice should therefore be more than just getting information about percentages and payment rates, it should also be a reflection of commitment involved in purchasing a property whether it is for an investment, for a home or just as somewhere to live short term.

Constant redevelopment means that the face of London is ever changing, and therefore so are the communities. Places that were once classed as undesirable areas to live in, East London for example, have been transformed into trendy social hotspots with clubs,  pubs, bars, boutiques and restaurants that all add to the improved atmosphere of the area. The Shoreditch area in particular has a thriving media and arts community, with constant gallery showings and events on throughout the week, popular enough to attract visitors from all over the UK.

When deciding to move to London, it is essential to do your own research as well as obtain professional advice. The best free mortgage advice in London comes from arming oneself with enough information to ask the right questions when talking to a broker. The better the idea you have of the type of property you want and how long you want to stay in a particular area, the better a professional can help you.

Whether a property is being bought as an investment, a home or just for somewhere to stay for a while, the advice on mortgages will change. The future of an area needs to be taken into account and the future of the individual, as well as the finances involved in such a major decision. A broker can only advise on what they know, and in the case of mortgage applications, it is important to remember that ignorance is not bliss, it could lead to a very costly mistake with the potential to affect other areas of your life too.

If you would like someone to contact you regarding mortgage advise please use our free mortgage quote form and someone will be in touch.