Mortgage applications have been affected by the lockdown crisis, and the freezing of the property market. When lockdown was introduced, the market was placed on hold temporarily to ensure the virus did not spread. However, it slowly began to open once more, and now, two months post-lockdown it appears the mortgage landscape is looking favourable for buyers.
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Research undertaken by the online mortgage broker Trussle has revealed demand is at a record high.
The broker states the two months following the property market freeze have been the busiest of the year so far, with many people flocking to the market to secure their deal.
There has been a 176 percent increase in next time buyer applications, and a similar 182 percent increase in first time buyer applications.
The Bank of England has stated growing demand usually means higher house prices, however, it is yet to be seen how the market will react to this boost.
House prices, however, fell by 0.1 percent more in June than in the same month a year ago, in the first annual fall in eight years, according to Nationwide.
This, though, could be attributed to the shock to the sector, and it is hoped recovery will increase over the coming months.
Trussle has offered advice to those who are currently looking to navigate the market.
For those who are looking to sell their home, the broker says spring and summer may be the best opportunity to do so.
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This is because these months are usually the busiest in the year, with the key to a “buoyant market” revealed as an increase in house listings.
For some, the low rates brought about by the COVID-19 crisis and financial uncertainty could prove beneficial.
Now could be a good time to capitalise on these low rates to remortgage, and Trussle advises customers to use a remortgage calculator to see if switching could save them money.
The introduction of a Stamp Duty holiday has also been identified as a key way homeowners can navigate the property market with greater ease.
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Introduced by the Chancellor in his summer statement, the Stamp Duty holiday applies to the first £500,000 of all property sales in England and Northern Ireland
The move is likely to affect large proportions of the housing market, and could have positive implications for buyers.
Such a holiday will alleviate some of the house moving costs for many buyers, and potentially put up to £15,000 in the pockets of those who need it most.
Trussle has described the move as the “push the property market desperately needs to get it back on its feet”.
Miles Robinson, Head of Mortgages at Trussle said: “Like many other industries, the mortgage market is undoubtedly in a state of flux, with house prices fluctuating and lenders pulling mortgage products.
“But, the more positive news is we’re beginning to see some green shoots. House buying has for decades been a sign of economic recovery, and we believe this situation is no different.
“However, we still need to tread carefully. Over time, we hope to see lenders add a wider variety of products to the market to make homeownership more accessible.
“Any current or aspiring homeowners who are concerned about the impact of coronavirus and what it might mean for their mortgage, should seek professional advice from a broker to discuss the options available to them.”
It is as of yet unclear how the property market will develop in the coming months, but reopening has been described as a step in the right direction.
In May, Housing Secretary Robert Jenrick commented: “This critical industry can now safely move forward, and those waiting patiently to move can now do so.”
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