New research by Mortgage Broker Tools (MBT) has uncovered the seemingly large disparity between lenders faced with mortgage applicants with the same set of circumstances.
Mortgage applications and home purchases are continuing to increase, even under the second Covid 19 lockdown with first time buyers and movers looking for a larger home. This has largely been triggered by 0% stamp duty and the need for a larger home space and a garden – to accommodate working from home and having an outside space to enjoy during lockdown.
The 0% stamp duty – on properties up to £500,000 comes to end at the end of March 2021 and this incentive continues to have a huge impact on demand to get on the property ladder and those wishing to move to a larger home.
MBT found that the average maximum mortgage loan available for those moving is currently £318,571 whilst the minimum, applying the same set of borrower circumstances, is £157,000; a staggering difference of £161,571.
Our advice would be not to make panic decisions; we still have 4 x months until the stamp duty holiday ends. Furthermore, we suspect that the stamp duty holiday will be extended – although no official announcement has been made.
We would always suggest that both first time buyers and movers get some independent advice from a broker such as Dunham McCarthy. Our knowledge gives you advice and guidance not based purely on the lowest interest rate, but also, how much each institution is willing to lend; it could be the difference between getting you a home that’s a compromised solution or one that’s perfectly suited to your personal tastes and requirements.