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What does the current state of the financial market mean for your mortgage and home buying prospects? Liam Brignull, Partner at go2mortgages, caught up with Eleanor Fagan from Move Sales & Lettings for a coffee and a chat. Watch our video above for a more detailed overview of the market or read our summary below.

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What's going on in the mortgage market?

We're all feeling the sting of rising interest rates and the imminent cost of living crisis that will have an effect on our monthly outgoings. But what does this mean for your mortgage? We are seeing a number of lenders withdraw their current products and reintroduce them to the marketplace with a slightly higher interest rate. This is becoming more and more common across the board, with different lenders at different loan to values. Obviously, the higher interest rate, the more expensive it is to borrow money. But, if we look back twenty plus years, we're still in a really good position. Historically, we have seen interest rates sky rocket to 17% (in 1979) as this was seen by the government of the time as a key weapon in combating inflation. With the market being more volatile than we are used to, it's important to stay on top of your financial situation and speak with the go2mortgages team about your affordability. Gradually, your monthly payments will increase, so it's important to research and familiarise yourself with what's available and attainable for you. Our team of mortgage advisors are on hand to walk you through your different options.

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What's going on in Cheltenham in terms of the housing market?

In comparison to March 2021, the number of properties advertised for sale in Cheltenham has decreased dramatically. In fact, listings have dropped to roughly half the amount, from 840 to 484. Eleanor from Move Sales & Lettings, believes this is due to a number of different factors;

• Being in an uncertain, post-COVID world. Many predictions have been blown out of the water as the housing market remains resilient against the pandemic. Where experts expected house prices to drop, they have soared, thanks to government schemes and initiatives such as the stamp duty holiday.
• With the high number of properties being listed over the last couple of years, the numbers have reached a peak and naturally have begun to drop off again.
• It is very much a seller's market at the moment.

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Our advice to you

Get your ducks in a row, so you're ready to go when a property you want comes on the market. Especially if you're renting at the moment and are a first time buyer looking to get on the property ladder. Knowing what is achievable and having your docs ready will mean you're an appealing candidate for the seller.

Due to supply and demand, many estate agents are looking for prospects to have a decision in principle in place (which proves that you can borrow X amount) BEFORE booking a viewing.

Historically, this hasn't always been the case, but in the current market (not just Gloucestershire) we are advising all current clients and prospects to make sure they have a DIP done so they are ready to hit the ground running when the time comes.

Whilst the market is a little bit quieter, it's worth taking the time to talk to the right people and make sure you've got the right information. Then, when something perfect does come up, you're ready to jump on it and act quickly.

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As always, if you have any questions about residential mortgages, the go2mortgages team are here to help. We don't have a crystal ball and we can't predict the future, however with more information from you on your circumstances we can help you explore the best options for you.

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We also have close links to Sales and Lettings experts in Gloucestershire and London should you have any questions about rental properties too. Please reach out using the details below:

go2mortgages - liam@go2-mortgages.co.uk

Move Sales & Lettings - enquiries@move.uk.net

Hume Estate Agents - Fulham

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