Low Borrowing Costs and Rising Mortgage Availability - Urban Union Ltd

Low Borrowing Costs and Rising Mortgage Availability

It has been a challenging year for many aspiring homeowners with the pandemic forcing many people to put their home ownership plans on hold. We saw the withdrawal of high loan to value mortgages last year but thankfully the mortgage market has bounced back over recent months with not only the number of 95% mortgage deals rising month on month, but low borrowing rates. Taking out a mortgage is currently more affordable than ever, and if you opt for a fixed rate you can plan for the future much easier knowing that your mortgage repayments won’t go up for the foreseeable future.

The number of mortgage deals currently available to UK borrowers is currently at its highest level since March 2020 with over 4,500 deals available – according to Moneyfacts there are 700 fewer mortgage options than there were before the start of the pandemic, and in June 269 were launched.

The mortgage guarantee scheme was introduced in April of this year with the aim of encouraging lenders to re-introduce high loan to value mortgages to the market meaning that those with only a 5% or 10% deposit could purchase a home, whereas during the pandemic buyers needed around 20%. At present, the number of mortgages requiring a 5% deposit has leapt almost twentyfold over the last year. This time last year there were just 14 95% mortgages available – now there are 253. In addition, house prices rose at their fastest monthly rate since 2007 in September according to the Halifax house price Index – increasing by 1.7% to £267,587 and by 7.4% year on year.

For the first time since 2018, Moneyfacts has recorded an increase in mortgage options for all deposit sizes.

The Mortgage Guarantee Scheme kickstarted the mortgage market for those with a small deposit – with significant numbers of deals available with a 5% or 10% deposit. It is open to all buyers – those buying a first home as well as those moving up the property ladder – and can be used on properties up to the value of £600,000.

Pollokshaws Living

We are delighted to announce that we have released the long-awaited selection of one and two-bedroom apartments at our newest Glasgow development, Pollokshaws Living. Our previous release of properties in Glasgow’s southside were snapped up in just days and we anticipate a high level of demand for these apartments.

Ten one and two-bedroom apartments will soon be available to reserve with prices ranging from £160,995 to £179,995. Included in the release are:

  • The Stewart a one-bedroom apartment priced from £160,995
  • The Glen a two-bedroom apartment priced from £177,995, and
  • The Monteith a two-bedroom apartment also priced from £177,995

These would make an ideal investment property in an increasingly popular area.