Skip navigation

Gloucestershire Business News

Mortgage affordability is always going to be a challenge - Enzo Mora of The Mortgage Brain

By Enzo Mora of The Mortgage Brain 

One of the things I love most about this job is helping people with life enabling situations, be it securing a mortgage, life insurance or income protection.

At the moment, first-time buyers are getting hit from all angles - property prices are still rising, mortgage rates on the up and many who are renters will see their rents increasing this year too according to the latest report from the Royal Institution of Chartered Surveyors.

Bank of Mum and Dad still lending

Seasoned as we are, we've been here before so we make sure we ask all the right questions about income and count everything that's allowed to contribute to the mortgage. 

Rightmove has some good news, with their data showing that demand for first-time buyer type properties is up 32 per cent compared with 2019, despite affordability challenges. A 10 per cent deposit on an average first-time buyer type home is now £22,494, which is 57 per cent higher than ten years ago (£14,316).

Estate agent Savills has said that the bank of Mum and Dad will support nearly half of all first-time buyers with gifts and loans set to total £25 billion over the next three years (2022-2024). Its analysis found that, in the three years to 2024, almost half a million first-time buyers (470,000), equating to almost one in two first-time buyers, will get financial help from a parent or other family member.

This help is likely to be needed to replace the government's low deposit Help-to-Buy Scheme which finishes on 31 March 2023 although properties need to be reserved by 31 October this year.

August recording a fall

The first monthly property price fall of the year has been recorded in August with a drop of -1.3 per cent but if you're looking to buy, don't get too excited as prices usually drop in August as summer holidays take priority and some new sellers are pricing more competitively to secure a buyer quickly and move home before Christmas.

And, while Rightmove says that new listings are up by 12 per cent taking some of the edge off the competition, available stock is down 39 per cent on 2019 so that will keep prices keen if demand for property keeps pace.

House prices beat inflation

This month also marks 20 years since the first Rightmove House Price Index was published. Since its inception, average asking prices have grown a whopping 134 per cent from £155,994 to £365,173. 

Meanwhile average salaries have grown by 76 per cent and the Retail Price Index has increased by 93 per cent in the same period, so house prices have been outstripping both salaries and general inflation over those 20 years.

Co-incidentally, it's been just over 20 years since I started The Mortgage Brain and while property market has seen many twists and turns since then, the ethos of our business remains the same - honest, speedy and expert advice - and of course securing the best mortgage deals.

Many of our customers have remained with us throughout our journey as we have on theirs and we look forward to helping new and existing customers alike through the next few decades.

To find out more about The Mortgage Brain, visit www.themortgagebrain.net or call 0333 340 8888.

Related Articles

New rules for EPC performance in commercial properties from April 2023 - Nick Cox of Willans LLP Image

New rules for EPC performance in commercial properties from April 2023 - Nick Cox of Willans LLP

From April next year, commercial properties will need to comply with new EPC regulations.

Autumn budget tax changes could create an urgency to move. Enzo Mora of The Mortgage Brain Image

Autumn budget tax changes could create an urgency to move. Enzo Mora of The Mortgage Brain

The Chancellor has finally made his long-awaited Autumn Statement and we’ll all be picking through the detail to see how we will be personally affected by tax rises, energy costs and council tax increases.

Copyright 2022 Moose Partnership Ltd. All rights reserved. Reproduction of any content is strictly forbidden without prior permission.