Number of new mortgage products continues to rise despite COVID-19
- 15th January 2021
- Buying Property News
Greater availability of mortgages driving activity in UK property market
The number of new mortgage products on the market increased for the third month in a row, reaching 2,893 in January 2021. This marks the highest monthly total since April 2020 (3,192), when the pandemic first started to take hold across the country.
Mortgages with a 90% loan-to-value (LTV) have seen the largest increase, with the number of new products increasing from 72 since then to 160. Mortgages with a 75% LTV also rose to 629 in January 2021 from 621 in December 2020.
The rapid rise in new mortgage products coming to the market has helped to meet rising demand from borrowers and drive activity in the UK property market. The number of house purchases being approved in the UK are at their highest level since August 2007, showing the resilience of the UK housing market despite the pandemic.
An expansion of new mortgage products comes as buyers are taking advantage of the Stamp Duty holiday, which is set to end on March 31 2021. Under the government initiative, buyers are exempt from paying Stamp Duty Land Tax on properties worth up to £500,000.
Stephen Ludlow, Chairman at ludlowthompson says: “With a range of new mortgage products on the market, prospective buyers have a greater array of financing options open to them.”
“During the first quarter of 2021, we are likely to continue seeing high-levels of activity in the UK property market, as buyers rush to complete purchases before the stamp duty holiday ends on March 31 2021. However the high level of finance available to purchasers suggests that activity levels should sustain themselves even after the holiday.”
Despite the second national lockdown, the ludlowthompson Sales and Lettings teams will continue to offer prospective renters and buyers guided video tours of properties and where deemed appropriate, socially distanced viewings thereafter.
This week’s video tour is a one-bedroom flat in the Docklands.
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Bruce R via Google reviews:
“The ludlowthompson Bow team were truly marvellous. They have sold two houses for me this year. Both transactions were complicated involving complex communications with tenants and of course covid restrictions. They stuck to their task admirably liaising with the buyer, myself and my solicitor at all times. They even helped arrange the clearance of both houses.
Richard C via Google reviews:
“We would like to recommend ludlowthompson's Tooting office sales department. Our first encounter was with a member of the team who kindly spent ages with us talking us through the area, and providing background on prices etc. We were then introduced to another member who did an amazing job of finding properties for us to review, and walking the streets of Tooting with us in the pouring rain, showing us as many properties as they could!”
With a range of new mortgage products on the market, prospective buyers have a greater array of financing options open to them
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