BUSINESS & FINANCE
HOW BROKERS CAN REMOVE STRESS WITHIN THE COMPETITIVE PROPERTY MARKET
The UK property market has rarely seen a period of such rapid price growth and sustained transactional activity as it has over the past 12 months .
After the first nationwide lockdown between March and June 2020 , the property market sprung back into life , with pent-up demand quickly converting in buyer activity . This was , of course , catalysed still further by the stamp duty holiday , which came into effect in July last year .
Property prices have soared since the introduction of the tax break . According to Nationwide , UK house prices rose by 13.4 % in the year to June 2021 , reaching a record high £ 245,432 . Further , HMRC data shows residential property transactions exceeded 350,000 in Q4 2020 , and Q1 and Q2 2021 – a level not reached in the preceding six years .
Amidst so much activity and change , navigating the mortgage market has not been simple for prospective buyers . For one , the number of products available has shifted dramatically during the pandemic , with lenders either withdrawing mortgage options or launching new ones .
According to analysis from Moneyfacts , in February 2020 a homebuyer looking for a 90 % loan-to-value mortgage had 776 products to choose from ; by September this figure had fallen to just 44 , whilst 95 % mortgages disappeared entirely . This number has been rising back towards normal levels in recent months , but the underlying challenge remains – buyers must be able to source the best possible product for their exact needs , and fast .
Finding the right broker
In this current climate , it has never been more important to work with a skilled and experienced mortgage broker . And there are a number of key qualities that buyers should look for .
The first is to find a broker that has access to the widest possible range of mortgage products , many of which will not be available directly to clients on the high-street . This will ensure the best fit between the product and the buyer ’ s needs .
The second is to work with a broker that can operate quickly . As the data above shows , the UK ’ s property market is highly competitive at present , meaning buyers must be able to act fast to demonstrate they have the necessary funds in place to proceed with a purchase – failure to do so leaves the door open to a rival .
Thirdly , buyers should seek out a broker who will remove as much stress as possible from the entire process . After all , securing a mortgage and buying a property can be testing , particularly if unexpected challenges or delays arise . The best brokers offer regular updates and honest feedback to a client , allowing them to make informed decisions every step of the way .
With founders that have more than 35 years ’ experience , Loans Arena is a leading mortgage brokerage that boasts a vast network of relationships with different lenders , as well as a bespoke approach to assess every client on their own unique circumstances . The result is insightful advice and access to mortgage products that will meet a buyer ’ s needs .
140 The Art of Luxury Issue 48 2021