On 22nd November, Chancellor Jeremy Hunt announced a whopping 110 measures in his Autumn Budget, focussed on the growth of the UK economy. What does all this mean for you, particularly if you are hoping to apply for a mortgage?
There were a number of measures announced which could affect your take home pay, and potentially make it easier to save. However, it remains to be seen if people are better off on average once inflation is taken into account. Here are the main points at a glance:
The current housing shortage is also a big problem. The below measures were announced in the latest budget to help tackle this, but given the estimate of 340,000 new homes being required on average each year, we had hoped for a bit more from the Chancellor’s speech.
Unfortunately, the Chancellor did not announce any new schemes (or reintroduce previous schemes) to assist first-time-buyers, mortgage holders or landlords. This is despite industry wide calls to do so, and a plea from Nationwide Building Society for an independent review into the FTB market. He has agreed to extend the Mortgage Guarantee Scheme to June 2025 to help those with smaller deposits buy a home. However, this scheme has not been particularly successful so far, largely due to the restrictions in place.
The good news is that we have started to see some stability return to the market, and lenders have been reducing rates in recent weeks. We expect base rate to hold steady for most of 2024, so don’t expect dramatic rate reductions. There are still options available which may help with affordability, or help you to get onto the property ladder!
Examples of the options available include shared-ownership, high loan-to-value deals (and some 100% deals through the likes of Skipton Building Society), and joint borrower sole proprietor mortgages, where additional applicants e.g., a parent can be added to the mortgage to help with affordability, without being added to the property deeds. We also have access to lenders who will accept complex or multiple income sources, more than 2 applicants on the mortgage, and multiple deposits or deposits from non-family members. Some of these options allow the donor to “protect” their deposit. It’s certainly worth a chat to see if we can find you an affordable solution.
If you would like to discuss options for purchasing your first home, moving or refinancing, please contact us on 01702 538800 or email firstname.lastname@example.org.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.