Recently I bought a load of firewood and was surprised to see the load had gone up not in flames but 10% in price.
“How so?” I asked.
“Brexit!” the supplier replied. I will leave you to consider my answer.
But the good news is that my lenders seem to be being much more generous post-Brexit. Many commentators in the mortgage finance world continually, it seems, to try and talk rates up. One day they may well be right, I am sure, but who knows when? The Million Dollar question.
However, for now, lenders continue to try and cut and prune rates where possible as they get to get their yearly lending targets off to a good start and avoid playing catch up. Also, I note many bells and whistles are being dangled in front of first-time buyers keen to make their first purchase. Offers of paying the stamp duty, generous cash-backs and free valuations certainly seem the norm now.
Meanwhile, the Government has published a white paper about housing. In this document, like all white papers, there is a fair share of filling but I note the Government is keen to get more custom built homes constructed. The paper says the Government “will support a joint working group with lenders, valuers, and the industry, to ensure that mortgages are readily available across a range of tested methods of construction”. It really is welcome that, finally, the authorities recognize that more houses must be built. My worry; is there enough labour and commensurate skills in this country to build at the targets that are needed?
When I speak to agents and surveyors now they tell me there is not really enough second-hand stock on the market for the anxious buyers out there currently. I have a number of first-time buyers who are looking desperately for the right house to come on the market. So it is a tough, but generally OK, marketplace for us to work in, if not a little difficult for you, the buyer. But at least it should be easier for you the seller!
My case load is interesting at the moment. I have some holiday let purchases and remortgages to place. This includes a 60s house that looks like it was built in 2023.
I have some holiday let purchases and remortgages to place. This includes a 60s house that looks like it was built in 2023, honestly! An amazing construction. I have some clients who want development finance to build a home on a piece of land once owned by a most famous British author. I have an increasing number of over 60s applying for loans, which is great because we now have lenders who, with great prudence, can help. A great step forward. I have two equity release cases to sort out. Equity release has been much maligned but explained properly and advised to the correct buyer and with the monies lent for genuine last resort needs it really does have a place.
I have two equity release cases to sort out. Equity release has been much maligned but when explained properly and advised to the correct buyer and with the monies lent for genuine last resort needs it really does have a place. I have buy to let inquiries, not as many as last year granted, but people are still putting BTLS in their portfolio.
In my next blog, we will look at the tax relief changes affecting BTL and what can be done to mitigate some of the tax relief changes.
Until then, please like, share across the web and social media, and send me any feedback!