Property market update
Thousands of aspiring homebuyers flooded the property market when it reopened in May last year, as pent-up demand, combined with new enquiries from buyers reassessing their property needs during lockdown, created a surge in demand. This was further intensified by the Stamp Duty holiday announced in July, which raised the Stamp Duty tax-free threshold from £125,000 to £500,000 for most home purchases in England and Northern Ireland until 31 March 2021.
Q4 2020 sees encouraging market activity
Nationwide data shows that house prices increased by 0.9% in September and 0.8% in October, bringing the total annual growth figure to an impressive 5.8% – the highest rate since January 2015. September also saw 91,500 mortgage approvals, a significant improvement on August’s figure of 84,700. This represents the highest number of mortgage approvals since September 2007. The positivity continues with Zoopla reporting a 50% increase in the size of the home sales pipeline compared to the same time in 2019, with 140,000 extra buyers rushing to get their transaction completed ahead of the Stamp Duty holiday deadline.
Mortgage payment holidays
31 October was the original deadline for the mortgage payment holiday scheme, but it was extended following England’s second national lockdown announced in November 2020. Borrowers who hadn’t yet applied for the scheme could approach their lenders for a repayment break of up to six months.
Why you should protect your mortgage
While we might think we’ll always be able to pay our mortgage, the unexpected can happen. Being prepared is essential to ensuring your family will be protected should the worst happen. This includes taking out mortgage protection cover – so make it your priority for this year.
Searching for a mortgage? Let us help
While it can be difficult to find competitive protection cover or mortgages (especially in the current climate), it’s not impossible. We can assess a broad range of mortgages and protection policies to help you decide which is right for you.
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.