newest data indicates boost for the property market
Two key sets of data have been released this morning, both showing an uptick for the end of the year in the property market. First off came the latest Nationwide House Price Index which showed prices rising 0.8% from November, the highest annual growth in a year, and up 1.4% on the year. Then came the latest Bank of England Mortgage Approvals figures, which were above analysts’ expectations.
Both of these datasets indicate that the property market may be coming out of its 2019 slumber, and that now that the election is out of the way and Brexit near completion, buyers and sellers will re-enter the marketplace.
The BoE figures show that there were nearly 65,000 approved mortgages for the month of November, up from 64.66k in October, and that there is a net lending of £4.052 billion. These figures have caught the market off-guard as analysts expected to see a figure below October’s level.
Despite the positivity of the Nationwide HPI, it is worth noting that although the country saw an upward curve, London house prices took a 1.8% hit compared to the same time last year. Whilst this is not great news for sellers, it could be music to the ears of property investors looking to get in on the market in the capital.
As we discussed in a previous article on London house prices, there are plenty of deals to be sought out and today’s news will likely get investors looking even closer. One of the ways to take advantage of bargains as they emerge on the market is by taking out a bridging loan as a form of short-term financing to ensure that you do miss out on a deal.
Bridging loans can be organized and with agreed terms in place on the same day as the initial enquiry. This makes sure that you can pounce once the ideal property becomes available. From there, funding can be in place within days, making bridging loans an ideal option even if you are purchasing at auction.
One of the key benefits of a bridging loan is the flexibility of the terms they are issued under. Loans can range from £50k to £10m in terms between 1 and 24 months. You can borrow up to a 70% LTV but there is a way of reducing your costs further. MT Finance offers you the opportunity to exit your bridging loan early at no extra cost as there are no exit fees or early repayment charges. As well as this, all circumstances will be considered upon application, so adverse credit, CCJs and arrears may not be an issue. There are also no personal guarantees required.
If you would like to get more information about bridging loans and to discover how they could help you purchase your next property, simply call one of our dedicated team members on 0203 051 2331 or fill out our contact form to get a call back.