Date Published 03 March 2021
Greatest Choice of Mortgages Since March 2020 Now Available
Mortgages in the UK took a hit last March when COVID 19 hit and the country went into a national lockdown - this caused a lot of confusion in the property market both for first time buyers who were close to getting onto the property ladder and for existing homeowners.
Lenders began to withdraw their mortgages in the first half of 2020 due to this uncertainty and the increased risk caused by the pandemic. This meant that borrowers who only had small deposits saved were hit harshly - a staggering 9 out of 10 mortgages for 90% of a property's value has been withdrawn in the months between March and the end of June.
Many homeowners were also forced to pause mortgage repayments as businesses closed and furlough was introduced for the UK workforce.
Mortgage Deals Availability at Highest Level in 11 Months
But there is good news on the horizon. After a year of uncertainty, there are now more mortgages to choose from on the market - the highest number since March 2020. There are currently 3215 different mortgages available in the UK and this includes fixed rate mortgages, tracker mortgages, and those with different interest rates and terms.
This is the highest rise in the market since 2007, with mortgage availability increasing 42% since October.
This will be a big sigh of relief for those looking to secure a new mortgage, particularly those who are first-time buyers with smaller deposit amounts. With the market improving, lenders are less risk averse than last March and stable interest rates have also encouraged increased competition within the mortgage market. It is worth noting however, that choice does remain limited for those buyers who only have a 5% deposit, with only a handful of deals currently available.
If you're wanting to remortgage or have a large equity stake of at least 40% this is also a positive development as the cost of a mortgage has fallen.
Mortgages are also available for longer, which is great news for potential borrowers. There is a rise in the number of days mortgage offers are available before being withdrawn by lenders - up from 28 days to 40 days. This means that if you're wanting to borrow, you have a higher chance of securing the right deal for you, before it's replaced by another offer.
How Do I Secure The Best Mortgage Deal?
Here at Marshall Property, we offer sound and honest mortgage advice to help you on your property buying journey.
If you're looking to purchase a property in Liverpool, or are selling your home, get in touch with us today for a friendly and professional conversation. With over 30 years' experience in the Liverpool and Merseyside property market, we're confident we can help.
Although our branches are currently closed due to the UK lockdown (except for appointments), we are still available via our phone line, by email or online contact form.
