Well there was a big build up, many questions and much deliberation but another election has come and gone without too much of a ripple so far on the housing market. In fact with continuity comes a little confidence so activity is increasing just days post-election.
As estate agents in Peterborough we here at Tortoise were looking at what effect the election has had on the mortgage market. Post-election, mortgage rates for residential mortgages have dropped slightly. The Bank of England may now not move the Base Rate until Quarter 1 of 2016 at the earliest, although deflation has taken effect in the UK economy which might mean it has to be moved before then so it doesn’t damage our economy in the long term.
With that in mind we have been checking out which mortgages are doing well. As current mortgage rates are at an historical low it is worth considering a long term fixed rate mortgage when buying your property. This will help you budget over the term of the mortgage. The Conservative government currently support the Help to Buy scheme and the Buy to Let market is expanding with its range of mortgages too. In September this year, the new Help to Buy ISA will be available giving first time buyers the opportunity to save a property deposit tax free. This should mean progressive movement in sales and create an upward moving market, hopefully supported by an ever-expanding mortgage market.
Buy to let has been growing in popularity with a new era of “Granlords” emerging into the rental market using property to boost their nest egg. The recent pension reforms were a potential predictor of this market growing further. Although thousands of enquiries have been made to pension providers it is still very early days to assess how people are actually spending their money, or in fact how many people have been able to release their money without penalty. There is currently a competitive mortgage available for people looking to buy property from the release of their funds from their pension, however we have not seen an expansion of products in this area.
For more mortgage advice or an assessment of your financial circumstances and review of your financial goals contact Chris Plummer our Relationship Manager for an informal chat on 01733 592020