To say that the last 12 months have been different would be an understatement. However, with all the changes that the world has shown us, there is one thing that has not changed and that is the need for financial guidance. Now more than ever, people are looking to review their finances and mortgage options and want the reassurance and expertise of a professional to help guide the way.
For some, the pandemic has meant job losses, for others they have seen their businesses thrive and grow more than they could ever have hoped. This has highlighted the need for change. Whether it has been as a result of spending lock down in a property that has proven to be just too small, or sadly the requirement for a new home due to relationships breaking down, we are seeing an increase in clients looking to review what options are available to them.
It is fair to say that the property market is booming at the moment and that the Stamp Duty holiday has played a big part in boosting the housing market. Millions of people benefitted by saving thousands of pounds thanks to the tax break. This gave people the incentive to move rather than improve. However, as time has ticked on, house prices have skyrocketed and the reality is the increase in house prices started to wipe out the benefit of the Stamp Duty relief.
Whilst the reduced rate of Stamp Duty continues at nil rate on purchases up to £250,000 until 30th September 2021, it could be argued that there is no real benefit to this now that property prices have inflated considerably due to the increase in demand. However, for many first time buyers this means that the upfront costs are still reduced as they do not need to find the additional tax charge on top of deposit funds, and yes deposit sizes will increase accordingly however, with the return of the 95% mortgages there are still so many options available with just a 5% deposit.
Ultimately with so many people now working from home, either fully or partially, there is a clear need to review living arrangements to ensure that they have the space to live and work comfortably under one roof.
We have seen lenders retract from the market completely and equally we have seen them return as confidence has once again grown.
The mortgage industry is thriving and there is an option out there for almost everyone. Whatever your current circumstances, we would highlight that mortgage advice is not just for those who are ready to take action now, but also those who want to understand what they need to do to get themselves financially fit and ready. Whether that is getting ready to buy your first property or move to your next home.