What the mortgage market review means for you

As the government unveils a mortgage market review, with the aim to turn a generation of renters into buyers, we look at what it means for you. 

What is the mortgage market review?

Rising house prices, difficult mortgage applications and high deposits – getting your foot on the property ladder can seem almost impossible if you’re a first-time buyer. That’s exactly why the Prime Minister has announced a review of the mortgage market. Boris Johnson confirmed that the government would look into more low-cost finance options like 95% mortgages in order to help people to achieve home ownership. 

Why is a mortgage market review happening?

The current cost of living crisis combined with rising house prices and harsh lending criteria makes it very hard for the majority of people to save enough money, or even earn enough money, to get on the property ladder. In fact, latest figures show that while half of today’s renters could actually afford monthly mortgage costs, only 6% would be accepted for a first-time buyer mortgage. 

What should I expect from the mortgage market review?

The first thing to note is that any review is likely to take a long time so there probably won’t be much change in the short-term. However, when it does come to fruition and changes are made, it will be good news for those who can afford monthly mortgage payments but struggle to get the right mortgage. 

Things to consider if you’re looking to buy now

Of course, while the mortgage market review is set to be a positive thing, if you’re looking to buy now, it might be disheartening. If you’ve already saved a deposit, it’s still worth getting in touch with a mortgage advisor to see what your options are. Even if you can’t afford one area, a trusted estate agent will be able to advise on similar areas that might be cheaper. That’s exactly where our property experts at Kaytons come in. Plus, we have direct contact with a leading mortgage broker and would be delighted to put you in touch. 

Every mortgage lender has different requirements and you won’t know your full situation unless you talk to someone. So, why not pick up the phone today or pop into our Chapel Street office and let’s take the first step towards home ownership.

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