The Finance Expert’s Eye On The 2021 Mortgage Market


The year ahead is uncertain but as you’ve just read, property experts are still predicting 2021 to be a strong year for the UK residential property market.

There is currently an unprecedented demand for moving house, leading to a record number of property transactions. Successive lockdowns have led many homebuyers and tenants to reassess their homes.

Spending more time at home in 2020 led people to look for more space and better internet connectivity. This, along with the stamp duty holiday approaching at the end of March 2021, is now fuelling further demand throughout the beginning of 2021.

Have you heard of the term
“bank of Mum and Dad” or
“the Granny bank”?

In the past decade it has become more and more common for homebuyers, and particularly First Time Buyers, to receive a contribution from parents or other family members towards the deposit on their first home.

2021 mortgage market the blackmore vale

These are just two rising in popularity ways, alongside newly created Retirement Interest Only loans, and Lifetime Mortgages that people are using to buy property. Low rates of interest and a stamp duty window, make now the perfect time to act if you are contemplating moving, buying a holiday home or simply passing wealth down the family line and reducing the family potential inheritance tax liabilities.

The likelihood of the Bank of England increasing the base interest rate at least in the short term remains slim. This means mortgage rates should stay low which is making this an attractive time to purchase property. Even with the stamp duty holiday set to end in March 2021, investors are taking advantage of these competitive rates.
Banks are gaining more confidence to lend, and this will continue to do so as more normality returns. This helps further increase the availability of mortgages.

This should be a good time to lock in lower mortgage rates and take advantage of subdued house prices. Interest rates and house prices are only likely to increase in the coming years.

So if you are thinking of buying or selling a property, then mortgage rates and availability of funds, together with advice on where best to access those funds will be an important factor.

Adrian Seager is Ward Goodman’s mortgage expert. He regularly reports on how the whole of the market is changing, something only your Independent Financial Adviser would do.
If you want to speak to him, call him on 01202 875900.

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