New Year New Home

The new year offers an opportunity to reflect on the past 12 months and set goals for the year ahead, which for some, may include a house purchase.

Many take this time to reassess their living arrangements, whether they are planning to get onto the property ladder, move home, remortgage, invest in additional property, or thinking about remodelling their home. The challenges faced over the past few years have greatly impacted the housing market. Our homes have now become an even bigger part of our lives, and many are starting to think hard about whether their living arrangements are right for them, or what other options there might be.

What Changed in 2021?

In 2021, we witnessed the return of the 90-95% loan-to-value products which have re-opened the market to first-time buyers with lower deposits. As well as this, there have been record low rates seen, however, whilst these remain low we are starting to see them creep upwards again. We have recently seen a surge of clients looking to move out of London. With the flexibility of homeworking, these individuals have been seeking more rural or coastal locations to live or buy a second property in.

Assessing Your Options in 2022

The start of the new year tends to be the time when many people reassess their finances and contemplate a potential house move or remortgage. Spring is the peak time for people looking to sell their homes and start the house-hunting process. For many, this may be the right time of year to begin to research and consider the options.

According to Rightmove, the average property asking prices are set to increase by 5% in 2022, which could add circa £17,000 to the average property value. However, Zoopla estimates that house price growth will slow down in 2022 to 3%. Either way, acting sooner rather than later could potentially avoid paying more on your next house purchase if housing prices increase further.

Support for First-Time Buyers

The UK Government’s Help to Buy Equity Loan 2021-2023 scheme aims to support first-time buyers to purchase eligible new build homes in England. Along with enhanced multiples for young professionals, we are also seeing lenders introducing more first-time buyer products to market with their ‘joint borrower, sole proprietor’ schemes, where parents can help to increase affordability on the mortgage but do not ‘own’ any part of the property.

If you are looking to move this year, starting your research early to beat the spring rush could be an advantage when you find a suitable property. For first-time buyers with low deposit options and a variety of schemes to take advantage of, the new year is a great time to start searching.

We are here to support you through the next big move in your life, whatever your plans ahead may be. Get in touch with one of our specialist mortgage advisers today on 01872 306411.