Mortgage approvals rise above pre-covid levels - Enzo Mora of The Mortgage Brain
By Enzo Mora
As property prices continue to rise and the cost of living goes up, Enzo Mora, CEO and founder of The Mortgage Brain explains why mortgage approvals remain strong.
Anyone who is looking to step on the property ladder for the first time, or taking a step up to a more expensive property, will rightly have a beady eye on the mortgage market.
Our advisers are increasingly being asked if lenders are getting pickier and if they will be able to get a good mortgage deal. We say yes to both those questions, however, as Nationwide recently reported mortgage approvals are running above pre-Covid levels.
The strength of the mortgage market points to the excellent job situation in the UK where the unemployment rate has fallen back to low pre-pandemic levels and borrowing costs are still historically low.
While budgets are being squeezed with the cost-of-living crisis, rising house prices are allowing homeowners to still consider a move and, in many cases, they can save money on mortgage repayments, even if they are borrowing more. Lenders must make sure that borrowers will be able to meet any increase in interest rates so no one will be lent money beyond their means to pay it back.
A survey conducted by Nationwide asked 3,000 consumers across the UK about their moving plans. Findings revealed that 38 per cent of people are actively moving or considering a move, with most looking to trade up, and 17 per cent considering a move to reduce spending by moving to a different area or a smaller property.
We can't stress enough how important it is to discuss your finances with a broker like The Mortgage Brain to see what you can really afford. Many of our customers are surprised and relieved that we can find them an excellent deal so they can move to their dream home.
Property website Rightmove's latest research also shows that in this fast-paced market, properties are achieving an average of 98.9 per cent of the asking price - which is the highest percentage since records began.
The speed of the market and competition among buyers is deterring some sellers from instructing an agent to sell their home.
However, if you have a mortgage in principle in place then it's possible to secure both a quick sale and a quick onward purchase which is a lot less stressful. Forward thinking always pays off and we're always here to help.
To find out more about The Mortgage Brain, visit www.themortgagebrain.net or call 0333 340 8888.
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