MORTGAGE UPDATE
IS NOW THE RIGHT TIME TO BUY PROPERTIES? LEE LANGLEY Principal OnPoint Mortgages www.onpointmortgages.com
The government’s announcement of a temporary stamp-duty holiday up to £500,000 in England and Northern Ireland has certainly led to a spike in enquiries here at OnPoint Mortgages. Interest has time buyers, home movers and buy-to-let investors. In fact, the measure is of greater benefit to home movers and buy-to-let purchases, as first-time buyers were already exempt up to £300,000 outside of London and £500,000 inside. First time buyers meanwhile face the challenge of lenders withdrawing 90 and 95% LTV products. It is understandable of course that lenders will want to review house
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prices and the impact on unemployment once the furlough scheme ends. Looking ahead, however, as an industry we must ensure that those with smaller deposits are not denied the opportunity for home ownership due to Covid-19. Especially when saving is hindered in a low interest rate environment and the ‘Bank of Mum and Dad’, crucial to many when getting their first foot on the ladder, will not be immune to potential financial difficulties caused by the pandemic. Data published in the latest Moneyfacts UK Mortgage Trends Treasury Report states that from the 1st of June to the 1st of July 2020, the number of deals available at 90% LTV fell from 183 to 70 and the number of deals available at 95% LTV dropped from 31 to 14. Those offerings at 5% deposit are limited, typically specialist products for
