Spike in new home enquiries predicted as mortgage rates drop to record low 

Spike in new home enquiries predicted as mortgage rates drop to record low 

House buyers in Lincolnshire are being encouraged to take advantage of record low-interest mor

Average mortgage rates have dropped to their lowest ever level after the Bank of England cut its base rate to 0.1 per cent in March in an attempt to counter the financial impact of the coronavirus pandemic.  

The move provides a great opportunity for those looking to get on or move up the property ladder, according to Lincolnshire housebuilder Chestnut Homes.  

David Newton, Managing Director of Chestnut Homes, said: “Following the events of recent months, many buyers may have been concerned about progressing with their move. However, it has been encouraging to see that sales have continued to progress throughout the lockdown period. With this latest cut to interest rates it means there has never been a better time to buy a home.  

“Rates for two and five-year mortgages are now at their lowest ever level, while Help to Buy is still available to assist those with smaller deposits. I would encourage anyone wishing to move in the near future to get in touch so we can guide them through all the help that is available.”

Oliver Peace, Managing Director of James Leighton Financial Services, which advises house buyers in Lincolnshire, said: “Anyone considering buying a property would be wise to act sooner rather than later as demand is going to outstrip supply of good value, high-quality dwellings.  

“Enquiry levels at James Leighton Financial Services Ltd since the lockdown restrictions have eased are 35 per cent up on the same period in 2019, and with many builders unable to complete properties during the lockdown there is going to be a shortage of available plots. 

“The fact that the new Help to Buy scheme, available for completions from 1 April 2021, will only be available to first-time buyers and regional price caps, is also going to restrict the number of homes to choose from significantly.   

“The knock-on effect of this is that there is likely to be a big spike in new-build enquiries and reservations. This will feed through to the resale market as second-time buyers rush to take advantage of the current Help to Buy scheme on their onward new-build purchase.  

“The rental market is also heavily oversubscribed and rental values are set to rise and rise as a result. It is no surprise that the cost of renting a home is more expensive, on average, than the cost of a mortgage and the gap is likely to widen. 

“With deposits as low as five per cent, mortgage rates at an all-time low, and house prices still subdued post-Brexit, now is definitely the time to buy.”  

The Help to Buy equity loan scheme is a Government initiative used by housebuilders across the country which allows buyers to purchase a new build property with just a five per cent deposit and a 75 per cent mortgage. The remaining 20 per cent is provided in the form of an equity loan, which is interest-free for the first five years.  

Chestnut Homes is currently building at six new homes developments across the county, in Alford, Bardney, Boston, Coningsby, Dunholme and Lincoln.  

tgage deals as the housing market reopens after lockdown.  

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