Property in: LONDON
Mortgage Market Continues To Show Strong Activity In Specialized Sectors

Mortgage Market Continues To Show Strong Activity In Specialized Sectors

by Vil
2 minutes

Specialist sectors in the mortgage market continue to experience intense activity, with the buy-to-let industry proving to be resilient. L&G's research indicates landlords are increasingly drawn to HMOs to protect higher rental income.

According to Legal & General's Ignite platform, interest in interest-only mortgages is rising as borrowers seek to lower their monthly expenses. In June, interest-only mortgages became the most commonly searched term, justified by a significant surge of 53%.

It suggests that borrowers might be considering reducing their monthly costs temporarily and switching back to capital repayment mortgages when interest rates become more favourable.

New Developments In London For Homebuyers

The search trends also reveal a surge in interest for multi-unit freehold blocks (up by 32%) and rental income (up by 38%). Additionally, the popularity of top slicing rose by 49%, while searches related to regulated buy-to-let rose by 15%.

Despite challenges like affordability issues, rising interest rates, and persistent inflation, the mortgage market remains booming. The resilience comes from specific sectors such as buy-to-let, overseas buyers, and the demand for particular property types.

Overseas Investments

Overseas buyers continue to play a significant role in bolstering the growth of the UK property market. Searches conducted on behalf of overseas customers increased by 16% in June.

Furthermore, searches for customers with a permanent right to reside or indefinite leave to remain saw a substantial 38% growth. Even among owner-occupiers, interest in interest-only mortgages is gaining momentum as borrowers seek ways to reduce their monthly financial burdens.

Catalogue Of New Homes In London

First-time buyers continue to come to the market

Despite ongoing economic volatility, there is a notable augmentation in demand from first-time buyers. In June, searches on behalf of first-time buyers rose by 14%.

However, affordability remains a dominant hurdle for their homeownership aspirations, as evidenced by a 21% increase in searches related to affordability and a 17% surge in searches related to minimum income requirements.

Was this article helpful?

Similar news you may like

We use our own and third-party cookies to collect data related to your activity on our site for analysis and to improve your experience. By continuing to use our site, you consent to the use of these cookies. Learn more