As a Maidenhead mortgage broker, we LOVE good news about mortgages, especially when they’ve been few and far between of late. It’s a bit like a prolonged bout of sunshine after a largely wet bank holiday weekend (sound familiar?) – a huge relief!
So, when news came in this week that estate agent Savills has predicted that property prices are likely to increase by 2.5 per cent this year (and a total of 21.6 per cent by the end of 2028), it brought a smile to the faces of our entire team of Berkshire mortgage advisers.
After all – and continuing with our wet weather analogy – the mortgage market has been quite inclement for some time. Of course, things change all the time. And we’d like to think that we’ve predicted these changes as part of our mortgage advice articles over recent months.
But a return to property price growth is good for those applying for a mortgage. And here’s why.
A positive cycle
It’s been well documented that mortgage rates are beginning to fall.
Whilst this is a compelling point for those looking for the best UK mortgage deals, it’s slightly less compelling when the media is reporting about how property prices are also falling.
Now that’s all changing (and don’t forget that Savills’ original property price prediction for 2024 was a 3 per cent decrease), it’s making way for a positive upwards cycle, instead of a negative downwards spiral that the UK housing and mortgage market has experienced over the last two years.
It’s also worth pointing out that property price growth is good for those who are remortgaging. If the amount of equity in your property increases, so too does your loan to value ratio. As a result, you will be more likely to qualify for preferential mortgage rates.
What next?
As the wheels of the housing and mortgage markets begin to turn at an acceptable speed – we’re certainly not at full speed just yet – it’s time for those who may have (understandably) been waiting for calmer economic weather to think about taking the next steps.
Put simply, if you’re looking for a mortgage broker in Berkshire, then contact our team of Maidenhead mortgage advisers, one of whom will be able to establish and talk you through the best mortgage deals available to you as the UK begins to turn an economic corner.
Following this week’s news, we anticipate a surge of enquiries. So, to make sure you’re at the front of the mortgage application queue and are mortgage-ready as we head towards the summer months, we’d advise you to get in touch sooner rather than later.
Contact the team directly on 01628 560820 or by emailing enquiries@altonmortgages.co.uk for expert mortgage advice in Berkshire.