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London Property News: a new dawn

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Many mortgage brokers in London say they have not been this busy since before Lehman Brothers filed for bankruptcy. Anscombe & Ringland Estate Agents work closely with City of London mortgage broker, Coreco, to build its knowledge of how the London finance markets work and here we look at the implications of the current mortgage broking trends with Andrew Montlake, Partner at Coreco.

“Mortgage enquiry levels are up, lenders are starting to compete again, Government led incentive schemes are coming out of our ears and mortgage rates are dropping; yet there are still reports that mortgage lending has dropped and banks are struggling to say ‘yes’ to even some of the simplest loans.

But there are more positives than negatives at present. Whilst the Government’s Funding for Lending Scheme has brought the lenders out to play again once more this year, its latest offering, the Help to Buy Scheme, if it materialises as planned, looks set to revolutionise the market next year.”

Robert Bixby, Regional Director of Anscombe & Ringland agrees with Andrew’s explanation on how one of the real issues in the market at present is often overlooked, “It is not the availability of mortgages (there haven’t been so many deals available so cheaply for many years), but as activity has increased, the service standards of some lenders has slipped to a degree that makes them an unsuitable choice where speed of completion is a key factor.”

Robert adds, “With the supply of property still relatively low, especially in high demand areas of London, a quick valuation and exchange are key to securing a property. It is no use applying for the very cheapest rate possible only to see the home of your dreams sold to someone else.”

Anscombe & Ringland is experiencing the most buoyant London market it has ever seen. Not only do we still have a raft of foreign buyers seeing London bricks and mortar as a safe haven for their cash (ask anyone with money in a Cypriot bank), but home-grown buyers who have had their lives on hold for five years or so are now finally feeling confident once more to look for properties. After all, a new home to accommodate a growing family or a move to get little Harry into the school of choice cannot be put on hold forever.

As Andrew Montlake comments, “Couple this pent up demand with 2 year fixed rates now available under 2% and 5 year fixes available at below 2.75%, you can understand why borrowers are beginning to seep back into the market.

Even struggling first time buyers are starting to see the benefit as the cost of products available with a 10% or 15% deposit are beginning to tumble; we’ve even seen a new product available with just a 5% deposit released recently.”

It does seem that we have finally turned the proverbial corner and a new dawn is breaking over the London market. The only thing holding the market back now is levels of property supply and the ability of lenders to service the demand.

To find out more, contact Andrew Montlake at Coreco or Anscombe & Ringland Estate Agents at one of the following branches:

  • Anscombe & Ringland Hampstead
  • Anscombe & Ringland Highgate
  • Anscombe & Ringland Notting Hill
  • Anscombe & Ringland St John’s Wood
  • Your home may be repossessed if you do not keep up repayments on your mortgage.
    A fee of up to 1% of the mortgage amount may be charged depending on individual circumstances. A typical fee is £495.

    Correct at time of publication. The views and opinions expressed herein are those of the individual contributor and do not necessarily reflect those of the Chancellors Group of Estate Agents Ltd or its subsidiaries. References to legislation, best practice and other matters with legal implications such as fees, rules and processes are included for information and editorial purposes only and are not authoritative, nor should they be interpreted as advice. When in doubt you should only take advice from an industry professional or solicitor where appropriate. E&OE.

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