The London property market is one of the fastest moving and most competitive markets in the world. Fuelled by a growing population, massive interest from overseas investors and a property development / construction industry that just can’t keep up with demand – prices have continued to soar, year on year for decades (bar a small blip during the global financial crisis of 2008).
With the price of an ordinary family home now sitting anywhere between ten and thirty times the average London salary, it’s no surprise that many first-time buyers are turning to the bank of mum and dad to fund their deposits. But even with a hefty deposit funding your first (or next) property purchase in London, it can still seem like an impossible task to get your first foot on the housing market. The new affordability rules mean that the lending criteria for mortgages have tightened and you’ll find that high street banks and building societies tend to have the toughest lending criteria of them all. Adding further pain to the first-time buyer is the fact that high-street lenders rarely offer market leading rates. That means your monthly payments are unnecessarily big and the amount you can afford to borrow is therefore less.
That’s where the value of a London mortgage broker cannot be understated. Mortgage brokers have access to hundreds of lenders. They’ll be able to provide you with mortgage offers not readily available through the high street or through mortgage comparison websites. Many mortgage brokers will have preferential rates with lenders which means as a buyer, your monthly payments will be less and you’ll be able to afford a bigger mortgage. London mortgage brokers in particular, are adept at using their market knowledge to squeeze the very last drop of lending capacity out of mortgage providers to enable first time buyers to get on the London property ladder.
So if you’re a first time buyer in London, in fact if you’re any kind of house buyer in London and want to maximise your borrowing capacity, say no to the high street banks and stay clear of the mortgage comparison websites. Instead, contact a London mortgage broker today and give yourself the very best chance of sourcing the funding you need for that all important London property purchase.