15 Feb Financing your home in 2021
In 2020 refinancing or getting a new mortgage for a home move proved difficult for many people; the coronavirus pandemic caused lenders to remove a number of accessible mortgage products from the market and interest rates edged up.
This year so far, we are seeing a return to some kind of normality and the picture will become significantly clearer when the next budget is announced; especially on the subject of the Stamp Duty Holiday deadline and a possible extension.
So, if you are thinking of making your move, we are always adding to our amazing catalogue of properties for sale in Virginia Water and the surrounding areas so, visit our award-winning website or call us on 01344 843000 and email us.
There are a number of factors for this financial uncertainty. Brexit was certainly one of them, 2020 was riddled with horror stories and theories, but now we’re out the other side of the January 1st 2021 deadline, we’re seeing this impact reduce.
The Covid-19 pandemic has been an ongoing factor for almost a year now. However, the property industry has been boosted by Government initiatives designed to stimulate the market. The Stamp Duty Holiday has spurred many people into re-evaluating their living situations and making the leap to buy a new home in order to take advantage of the tax break.
However, with the end of the Stamp Duty Holiday approaching (March 31st 2021) we are likely to see a significant reduction in the number of property transactions, unless there is an extension which at the time of writing (12/02/2021) is due for debate in Parliament.
There was also concern that with the ending of the furlough scheme and the potential rise in unemployment that lenders would be less keen to bring new competitive mortgage products to the market.
Return to Stability
As we exited a tumultuous 2020, we are seeing more and more confidence returning to the market. This is demonstrated by the increase in the availability of competitive mortgage deals; with the housing market stabilising so too are mortgage rates.
As the Covid-19 vaccination is rolled out to the wider population and confidence returns to the property market we are seeing a wider variety of mortgage products being made available. Mortgages with higher LTV ratios are returning to the market, with 10% mortgages making a comeback to help first time buyers on to the ladder in 2021.
For some of those people looking to get on to the property ladder, lock down, furlough or working from home during the pandemic has enabled them to save enough for their deposits. So, we wouldn’t be surprised to see an influx of new potential homeowners this year. With or without the Stamp Duty Holiday, first time buyers will benefit from paying zero Stamp Duty on properties with a value up to £300,000 and just 5% on the value between £300,000 and £500,000.
There is no sign of demand for properties in the commuter belt reducing at the moment. Since May 2020 (property market reopening) we have seen a huge influx of people cashing in on their City apartments in search for more space and access to outdoor, green areas.
The pandemic has forced many employers to adopt a more remote way of working; this means that employees are required to spend less time in their city offices and a more efficient and environmentally friendly “work from home” attitude has been encouraged. So, gone are the pokey flats in the City in favour of a house in the commuter belt. Close enough to travel to the city for work, far away enough away to enjoy the clean air and green spaces.
Get in Touch
If you are thinking of moving to the area, make sure you take a look at our amazing catalogue of properties for sale in Virginia Water and the surrounding areas.
If you’d like to speak to someone about properties to let in Virginia Water, a member of our expert team would be happy to help. You can call us on 01344 843000 or email us. You can also follow us on Facebook, Twitter, Instagram and LinkedIn.