Though the weather isn’t exactly reflecting it, we’re now into the year’s brighter months. And with lockdown easing, there’s a lot to look forward to.
The mortgage industry has been steadily moving in a positive direction after some pretty hairy scary months around this time last year.
Last week we reported on how record mortgage borrowing was being seen as the industry starts to make a much-needed recovery from the tremulous time that was 2020. And with May 2021 now well underway, there are further trends appearing that support this.
In our latest blog, we’ve picked out some of the highlights of the mortgage industry this week and looked at what this might mean for contractors and freelancers seeking a home of their own in 2021.
Higher number of Mortgage Deals to choose from
When you’re in the market for something but there’s a dearth of options, that can be really frustrating. That applies in the supermarket, but it also applies in the mortgage world.
Thankfully for anybody on the hunt for the ideal mortgage, new research shows there is a growing number of mortgage options available out there.
Research to be published in the upcoming Moneyfacts UK Mortgage Trends Treasury Report indicates an increase of 85 new mortgage deals available on the UK market between April and May 2021. This takes the overall number of mortgage deals just shy of the 4,000 mark.
This is great for anybody seeking a mortgage as that perfect deal could be within your grasp, but also shows that the wider industry is moving in a good direction.
Greater number of higher-LTV products available too
The government-backed 95% LTV mortgage scheme has been one of the most talked about announcements in the mortgage industry of late.
This means that from a buyers perspective, with a relatively low deposit it’s possible to secure a bigger and more expensive property. Without the government backing, lenders were always going to be reluctant to issue mortgages with that kind of LTV ratio.
However, thanks to the launch of the government’s scheme to help boost the housing market, a significant number of lenders have made 95% LTV mortgages available to buyers.
The overall number of such offers swelled from 34 at the start of April 2021 to 112 at the start of May 2021. These findings are once again from the Moneyfacts UK Mortgage Trends Treasury Report.
Good times here to stay?
We blooming well hope so. Things are looking as settled as they have done for a long time, and the mortgage industry is starting to feel like its old self.
Outside of the market, things are also starting to feel like they are returning to normal, with Boris Johnson this week further reducing the restrictions that were made necessary by the previously high Coronavirus rates.
The collective effort to move back towards normalcy seems to have started to pay dividends, and this summer looks like it could be a great one whether you are buying a home or not.
As a contractor or freelancer, if you are in the market for a new mortgage, more options means more chance of finding that perfect one for you. We advise you to be vigilant and careful when seeking your choices, and it’s always a good idea to see how much you might be able to borrow.
At present many things are working in your favour. And that can only be a good thing for the contractor mortgage, freelancer mortgage, and wider mortgage industry.
