With many prospective homebuyers, investors and vendors still unsure about what the right move is for them post-Brexit, London estate agent Portico has put some key property questions to its resident property expert Mark Lawrinson and financial experts Capricorn Financial Consultancy.
Is now a good time to buy property in London?
The Regional Director of Portico, Mark Lawrinson, explains: “If it’s an investment you’re after, then as long as you use the advice available to you, you can protect your assets and minimise any risk. Buy in areas that are undergoing gentrification or experiencing infrastructure investment, that offer healthy yields so mortgage repayments aren’t a problem. As London has proven in the past when it bounced back from the recession, it’s an extremely resilient city, so if you are buying with a medium to long-term view, then your investment as a business or home is safe.
“If you’re buying a home, then holding off could be equally as detrimental as it could be positive. For example, a lot of buyers haven’t managed to get on the property ladder because they were determined to chase the lowest prices post the last financial crisis. Unfortunately, while waiting for prices to drop, they did the opposite, and they ended up watching the market rise again to levels unaffordable to them.
“Money is as cheap as it can be to borrow, which makes getting on the ladder that bit easier and moving up it more affordable. Unfortunately, nobody can predict the future, so if you’re in a position to buy today, then don’t hesitate; remember you’re buying a home first and an investment second.”
Your Post-Brexit Property Questions Answered
What are the best mortgage deals currently available?
A Mortgage & Insurance Advisor from Capricorn, Alanzo Seville, says: “The referendum result caused people to pause and consider their position, but over the past month, we have been meeting with clients who are now wanting to press ahead with their property purchase, as they are recognising that the mortgage market is in a very competitive space, with lenders reducing their product rates to attract as much business as possible.
“This month’s decision by the Monetary Policy Committee to reduce the Bank of England base rate has resulted in lenders reducing rates further. This means interest rates are now at historically low levels, so a mortgage which may have previously been unaffordable is now within reach.”
Worked example
Seville gives an example: “If a couple are looking to purchase a new residential property for £450,000 with a 15% deposit (so £67,500), there is a two-year tracker rate available at 1.54% with monthly payments of £1,546 over a term of 25 years on a capital repayment basis. If they prefer a fixed rate product, there is a 1.65%, two-year fixed rate available with monthly payments of £1,565.
“If the same couple are looking to purchase a buy-to-let property for £450,000 with a 25% deposit (so £112,500), there is a two-year tracker rate available at 2.20% with monthly payments of £634 over a term of 25 years on an interest-only basis. If they prefer a fixed rate product, there is a 2.34%, two-year fixed rate available with monthly payments of £668.
“The mortgage products mentioned above are just a couple of examples of what can be achieved. The exact rate available will depend on your individual circumstances.”
Is now a good time to sell my London property?
If you are looking sell your property this year, Portico advises you to act now and not wait-and-see how the market pans out. “After all, no one can predict the market,” it says.
The agent reports that housing market activity usually spikes during the summer months in London, and there is currently strong demand from buyers looking for a property. If you are thinking of selling, it is very possible that you can achieve your asking price with the help of a good agent. In the current market, simply advertising your property will not get it sold; a good agent will help you get the best price possible in a good market and ensure your property is sold for a good price in difficult markets.
Remember, you are employing a professional advisor who should develop the right marketing strategy for your property and create a plan to get your property sold for the best price possible. A good agent will discuss the plan and strategy they would implement, and give you regular and informative feedback.
If you have any more property questions, get in touch at hello@34.207.192.121, and we will try to help!
