As 2020 introduces us to a grim housing market report this year, showing prices surging above 2% in August alone (another painful record high), it was also greeted in some quarters as good news.
Stephen Kerrigan, Sheffield Fee Free Mortgage Advisor wrote:
","doYouWantAButton":false,"buttonLink":"","buttonLabel":""},{"__typename":"DatoCmsQuoteBlock","model":{"apiKey":"quote_block"},"quote":"I am delighted to see two positive sets of market analysis this morning with property values reaching new heights, which is an impressive effort, which is all things considered."},{"__typename":"DatoCmsContentBlock","model":{"apiKey":"content_block"},"doYouWantAHeading":false,"heading":"","doYouWantText":true,"text":"Have you ever wondered if these people ever consider the plight of young workers toiling away paying high rents and having to save year after year for a deposit, while all the time prices escalate further out of reach?
","doYouWantAButton":false,"buttonLink":"","buttonLabel":""},{"__typename":"DatoCmsContentBlock","model":{"apiKey":"content_block"},"doYouWantAHeading":true,"heading":"HSBC was the last major bank offering low-deposit mortgages ","doYouWantText":true,"text":"However, there was bad news for First-Time Buyers, as they will no longer be able to get a 90% mortgage, but they will be able to find a 85% loan. HSBC was the last major bank offering low-deposit mortgages and has been overwhelmed with demand. But this means a buyer of the average-priced home in the UK must now put down a minimum deposit of £33,000 rather than £22,000 before.
","doYouWantAButton":false,"buttonLink":"","buttonLabel":""},{"__typename":"DatoCmsContentBlock","model":{"apiKey":"content_block"},"doYouWantAHeading":true,"heading":"\"I’m curious that banks are quitting the First-Time Buyer market\"","doYouWantText":true,"text":"Mortgages Remortgages Advisor, Stephen Kerrigan questions:
","doYouWantAButton":false,"buttonLink":"","buttonLabel":""},{"__typename":"DatoCmsQuoteBlock","model":{"apiKey":"quote_block"},"quote":"I’m curious that banks are quitting the First-Time Buyer market. Why? The banks are awash of cash since the Coronavirus Lockdown."},{"__typename":"DatoCmsContentBlock","model":{"apiKey":"content_block"},"doYouWantAHeading":false,"heading":"","doYouWantText":true,"text":"The last time banks stopped supporting the first-time buyer market was in the financial crisis in 2007/08, when they had no money to lend. However, ever since Lockdown this year; the banks have had huge amounts of money no spent since everyone was at a standstill.
","doYouWantAButton":false,"buttonLink":"","buttonLabel":""},{"__typename":"DatoCmsContentBlock","model":{"apiKey":"content_block"},"doYouWantAHeading":true,"heading":"Why are they not lending out?","doYouWantText":true,"text":"Going face to face with a wave of arrears and defaults when a mortgage holiday and furlough schemes are ending is too soon. Maybe banks think that if they lend 90% of the cash to buy a £250,000 home, if they have to repossess in a year or two’s time, they won’t get all their money back.
","doYouWantAButton":false,"buttonLink":"","buttonLabel":""},{"__typename":"DatoCmsContentBlock","model":{"apiKey":"content_block"},"doYouWantAHeading":true,"heading":"Where does this leave First-Time Buyers? ","doYouWantText":true,"text":"Nationwide still have a 90% loan-to-value mortgage at 3.24% however, there are lots of strings attached. You can only borrow for a maximum of 25 years, and you cannot just get your mum and dad to give you a deposit – the buyer must prove that they saved 75% of the deposit themselves.
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