There is no doubt that the property market has been affected by ongoing economic and political uncertainty. However, despite hesitation from buyers and vendors, resulting in reduced activity in certain areas, recent research indicates that the property market over the next 12 months shows signs of resilience1.
Sales volumes are expected to stabilise, whilst prices nationally are expected to rise in 2020. Wide regional variations are still forecast.
FIRST-TIME BUYERS DOMINATE THE MARKET
Last year, first-time buyers (FTB) outnumbered all types of property buyers for the first time since 1995 and FTB mortgage completions peaked in the summer, with the highest monthly total in August for 12 years2. Benefits for FTBs include government initiatives such as Help-to-Buy and Stamp Duty relief (not applicable to Land Transaction Tax in Wales) as well as low mortgage rates, higher loan-to-value mortgages on offer and reduced competition from buyers, such as buy-to-let landlords.
THINKING FOR THE LONG-TERM
Traditionally, mortgage terms have been for 25 years, but demand for longer-term deals has seen substantial growth and this trend looks set to continue. Longer-term mortgages result in lower monthly repayments and can allow borrowers to have access to larger loans, even with stricter borrowing rules limiting how much you can afford to borrow. Data indicates six in 10 mortgage deals now come with a standard term of 40 years. Lenders have been extending their maximum age limits, meaning that many current borrowers won’t pay off their mortgage until they are in their eighties.
WE CAN HELP
Are you planning to move, remortgage, downsize, release equity or just review your mortgage deal? As experts in the mortgage market Nexus IFA can advise you on all aspects of your mortgage and protection requirements.
No matter what 2020 has in store, we remain on hand to provide you with the support you’re looking for.
1Royal Institution of Chartered Surveyors, 2019
2UK Finance, 2019