Mortgage guarantee for buyers makes it a good time to sell
As a result of the coronavirus pandemic there has been unwillingness by the banks to take on the risk of low-deposit mortgages. To address this issue, the government are launching a scheme that will help get buyers into the market.
What is the mortgage guarantee scheme?
The mortgage guarantee scheme is a government measure to help people who cannot at the moment afford the deposit required to purchase a property to get on the property ladder.
It was announced in today’s budget (March 3rd 2021), and launches to lenders in April 2021.
- 95% loan-to-value (LTV) scheme
- Just 5% deposit required
- Scheme is not just for first-time buyers or new-build homes – also available to existing homeowners
What does Budget 2021 mean for the London property market?
As this scheme encourages more lenders to offer mortgages to people with smaller deposits, it will reinvigorate the property market as it brings more buyers into the market.
This means people who are currently renting can now look to buy property that they might not have been able to afford up until now. With just 5% of the purchase price being required upfront, this will make property more affordable and increase demand in London and nationwide.
Does this make it a good time to sell your London property?
Yes, with more buyers now suddenly coming into the market in one surge, demand will be unusually high – especially for the initial period as people rush to get onto the property ladder while they can.
By selling now, you will be tapping into this pent-up demand meaning you will have more buyers competing to buy your property during this sudden spike in the demand.
How can Henry Wiltshire help me gain from this demand spike?
Henry Wiltshire estate agents has offices throughout London and our local sales teams can help you get the best price for your property. As well as local knowledge, our agents have access to people currently renting who wish to get on the property ladder.
We are with you through the selling process from start to finish making sure you get the price your property deserves.
Call us today for free valuation to be ready for this new wave of buyers.