Good news for buyers and renovators – July Mortgage Approvals are at a 10-year high

Buying your first home or upgrading your existing home might not be as unachievable as you think. Although the news can sometimes paint a picture of a struggle to get on the property ladder, the latest set of statistics from Financial Reporter are very positive. The statistics show that approvals for purchases were up 16.4% compared to last year, and approvals for remortgages were 19.4% higher. 

What’s the mortgage market looking like right now?

The good news is that there are some very competitive mortgage rates available at the moment, and banks have plenty of funds ready to lend. Schemes like the Help to Buy Equity loan are also helping to create better affordability by decreasing loan to value. House prices have dropped a little too, as some are in a rush to get things moving in our uncertain political climate.

Who can benefit from a healthy mortgage market?

All of the above is great news for First Time Buyers who have been waiting to be able to “afford” to buy their first home. With the rise in new build properties with attractive incentive schemes and warranties, it’s certainly a buyers’ market particularly for those looking for a starter 1 or 2 bed apartment. It’s also a great time for buying an investment property or second home. Buy to let mortgage rates are low too, so renting out a property is still a viable way to cover costs whilst holding on to an asset that could well increase in value over time.

Existing homeowners can benefit from low remortgage rates and higher approval rates in a few ways. Firstly, there is more opportunity to raise finance to carry out home improvements such as new kitchens and bathrooms, conservatories, extensions or remodels along the lines of Sarah Beeny’s doubling your house for half the money. If you have a growing family, or your family dynamics have changed, this can be a great way to have a new home without moving. But it’s also a great strategy for increasing the value of your home, if you’re looking to move in the medium term or perhaps rent your existing property to tenants in order to purchase somewhere. Beware of ceiling prices and early repayment penalties, but it is possible to add value to your house very quickly if you can improve the quality of the interior, particularly if currently your home is showing signs of wear and tear. Replacing flooring, replacing windows, painting and decorating, replacing the driveway, landscaping front and back gardens, replacing light fittings, radiators, anything that looks a little tired can all be carried out as one project and can make a difference to the appeal and value of your home if work is completed to a high standard.

If you are planning to rent or sell your home, our team are happy to offer some guidance on the best renovations to carry out, and we can even carry out a free valuation of your property in its current condition and offer you a comparison figure for what it could be worth with renovations. Find the relevant office to suit your needs and location on our contact page.