Housing market - comment

We have reported in this newsletter last year on the Mortgage Market Review (MMR). This is the new set of rules introduced by the Financial Conduct Authority in the aftermath of the banking crisis which, amongst other things, imposed various obligations on lenders when considering an application for a mortgage from customers. The lenders are now fully responsible for assessing whether a potential borrower can afford their loan and interest-only mortgages were virtually outlawed.

The MMR meant that as from April 2014 lenders imposed much stricter lending criteria and made it more difficult for some borrowers to obtain a mortgage.

Anecdotally, property professionals are reporting that the housing market has slowed in the last couple of months in the run up to the General Election. Despite this, some lenders are offering historically low mortgage interest rates to try to attract new customers with one two year fixed rate being set at 1.09% and another lender offering a five year fixed interest rate at 1.99%.

Your solicitor is not permitted to give you 'financial advice' when you are considering selling and buying your home and should advise you to obtain independent financial advice on the mortgage deal that may be best for you. However, when considering a house move it is important to ensure that you instruct your solicitor early in the process as there are a number of forms to complete and in many cases, a lot of paperwork to get together to help your transaction move along smoothly.

To discuss any aspect of the house selling and buying process, contact us.