Mortgages London | Mortgages in London

Posts Tagged ‘Mortgage Quote’

We all know that the most favourable mortgage quotes come with the biggest deposits, and that if you can’t stump up at least 40% of the total amount, interest rates will be high. In London the chance of raising a deposit of this size is more difficult than anywhere else in the country due to the high cost of properties in the capital. There are ways you can get a mortgage if you don’t have a large deposit though, and here’s how to get the mortgage quote you are looking for.

Approach an independent broker – Brokers have years of experience and can spot changing trends in the mortgage market. Many borrowers find that they can get the most competitive mortgage quotes from a broker as they are able to approach lenders and find a better bargain than when a borrower enquires directly. An independent mortgage broker can also help secure a lower interest rate when the time comes to remortgage. There are a wide variety of brokers in London that specialise in specific property markets, so if you want to purchase a high value property, you can enlist the services of a broker that specialises in that sector.

Research Government schemes – There are a few products on the market that allow borrowers to access interest free loans in return for giving up a percentage of the equity in the property. These have been designed to help buyers get on the property ladder with a minimal deposit. Depending on which scheme you are eligible for, your mortgage quote could be reduced to just 85% of the value of the property, and you may only need to find a 5% deposit. These schemes make it possible to buy back the equity at any time, or pay it off upon sale of the property.

Consider property share – Many first time buyers decide to purchase a property with other people, resulting in part ownership of a property. This has become increasingly popular in London as young professionals consider flat share to avoid commuting to the city. Getting a favourable mortgage quote for this type of purchase will require advice from specialist mortgage providers, and will slash the amount of money needed for a deposit considerably.

If you are a first time buyer then you have more chance of getting a mortgage quote that means something in London than anywhere else in the country. This is because London is the only place in the UK where the property and mortgage markets are generating figures that reflect a thriving recovery. House prices are going up and there are plenty of first time buyers to feed the process, and more importantly mortgage applications are being approved.

Elsewhere in the country though, the figures reflect an alternative reality. According to a recent survey, only 26% of the population who are planning to buy a property within the next 12 months are first time buyers, this is an increase of just 5% since the beginning of the year and indicates a close to stagnant market for the next 12 months. The figures have come as a surprise to lenders who were hoping that the stamp duty holiday offered to first time buyers would serve to boost the market.

Ideally a healthy housing market is comprised of around 40% first time buyers, but due to restricted lending, this actual number falls far short of the ideal; with the exception of London. The capital has the highest percentage of potential borrowers than anywhere else, with an above target figure of 43%. The majority of these potential buyers also think that now is a good time to invest in a London property as interest rates are low, and property prices are slowly rising.

By securing a favourable mortgage deal now it is possible for first time buyers who are purchasing a London property to get a return on their investment in the near future; an opportunity other locations in the UK might not be able to offer buyers. Mortgage advisors in London recommend that potential borrowers obtain a mortgage quote now to find out if they can feasibly start climbing the property investment ladder.

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