Keeping doctors and dentists informed with the latest mortgage news and rates.
The UK property market is always a topical subject. This month, London has been highlighted as a potential property “bubble”, which could result in a “crash”, if activity continues. First-time-buyers are thought to be contributing, as there is a high demand for, and a shortage of, one or two bedroom properties, that would suit a first-time-buyer. However buy-to-let investors are also seeking this profile of property. Read more and review this month’s BEST RATES here.
This does not constitute advice and advice should be sought in all instances before acting on it.
Your property may be at risk should you be unable to maintain any agreed mortgage payments over the term agreed.
Mortgages for doctors and dentists
View sample rates below – ACT NOW
- 2 Year @ 1.44%
- 3 Year @ 1.89%
- 5 Year @ 2.29%
- 10 Year @ 3.04%
Offset Products
- 2 Year Fixed @ 1.64%
Smaller Deposit – Purchase/Remortgage
- 90% 2 Year @ 2.39%
- 85% 2 Year @ 1.84%
Buy-to-let arrangements for Purchase/Remortgage
- 75% 2 Year fixed @ 2.19%
The average lender’s Standard Variable Rate is now 4.54% (BOE October 2015)
The above does not constitute advice and advice should be sought in all instances before acting on it
It’s all about first time buyers
This month, there is a lot of topical news on first time buyers, who seem to, after all the bad press, be making progress on getting on the property ladder.
Read more: Break for first time buyers
The Help-to-Buy scheme has been partly responsible for giving first-time-buyers the break they needed.
In Q2, between April and June 2015, the scheme helped a record number of first-time-buyers with owning their first home with over 9,000 completions in that 3 month period, as reported by the Department for Communities and Local Government (DCLG). This equates to 3% from the same period in 2014 and 46% increase compared to Q1 in 2015.
Over 56,000 people are now homeowners thanks to this government initiative.
First-time buyers competing with buy-to-let investors
Rightmove reported that buy-to-let investors are seeking investments on smaller scale properties, which is precisely the same profile sought after by first-time-buyers, creating an edge of competition between these two different buyers.
The demand for first-time-buyer properties is thought to be pushing the average property price upwards.
Rightmove figures show that in October 2015 alone, the average property price in England & Wales has increased to over £295,000, representing a 0.6% increase in just that month and a 5.6% rise since one year ago.
First-time-buyer properties, similar to a one or two bedroom house or apartment, are reported to be almost 10% higher than one year previous.
What can first-time-buyers do?
With added demand for properties, which are still short in supply, first-time-buyers need to organise their finances, if they stand a chance of their offer being accepted.
Miles Shipside, director at Rightmove suggested that buy-to-let investors are cleverly negotiating with home owners as to why they should accept their offer over a first-time buyer. Often buy-to-let investors have better financial backing, cash deposits and can act quickly, which are all advantages in property negotiation.
First-time buyers are wise to seek mortgage advice to get a mortgage “agreed in principle”, as well as clear old debts and ensure that the credit rating is as good as it can be.
Read more: London could be the next house price bubble
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