The mortgage market rarely stays still for long, and there is always something going on to consider and mull over.
A few things have caught our eye this week, so here’s a quick round-up as to what’s been going on.
Growth in specialist mortgages predicted
If you have a set of particular circumstances that stand out from the norm, or are looking to buy an unusual property, then the term ‘specialist mortgage’ might be something you are familiar with.
This is a mortgage that deals with certain scenarios and provides lending based on specific circumstances.
They have not been too common in the past, but one mortgage organisation has predicted a growth in this market moving forwards as the dust settles post-COVID.
Bluestone Mortgages has conducted research suggesting that 63% of mortgage advisors believe specialist mortgages will grow in number.
House Prices still rising despite end of Stamp Duty Holiday
The stamp duty holiday has now reached its conclusion, despite the industry (and ourselves) calling for it to be extended.
There has still been a rise in house prices however. The Nationwide House Price Index has indicated that the average house price still rose by 2.1% in August.
The data shows that the average house price in the UK now stands at £248,857. This was the second biggest month-on-month jump in 15 years.
95% LTV mortgages yet to take off
Earlier this year, the UK government threw its weight behind a new initiative to support applicants and lenders in delivering 95% loan-to-value mortgage deals.
This was with the aim of enabling more people to secure their first home, and only needing a 5% deposit in order to do so.
However, it seems that people are not queueing up to take advantage of what’s on offer. Online mortgage broker Trussle has indicated that just 1% of mortgage deals completed were for 95% LTV mortgages.
Trussle pointed to the low availability of this kind of deal as being key to this, and a high rejection rate despite the governmental backing.
Get the guidance you need
There’s always plenty going on when it comes to the mortgage industry. Things can be complicated at the best of times, and can be even trickier if you are a contractor or a freelancer.
This means getting access to free mortgage advice is a wise idea. Roots Mortgages can help here and offer expert guidance and analysis.
We will continue to provide you with news from the contractor mortgage and freelancer mortgage industry, so watch this space.