There’s no two ways about it. Getting a mortgage today is harder than it has been for some time. Just when we thought things were about to ease off, we’ve seen many of our lenders pull what had been considered the best UK mortgage deals.
However, as a Guildford mortgage broker with a large proportion of clients in Guildford and the surrounding areas, there is some good news for the Guildford community.
Recent articles in In Your Area and The Express revealed how Guildford is not only in the top 10 towns in England where property prices are on the up – but it’s in pole position.
According to information from the Land Registry, Guildford’s number one spot saw the area’s property prices increase from £518,526 in February 2023 to £578,450 in March, which amounts to just over 11.5%.
So why, exactly, is it good news for those looking to get a mortgage in Guildford?
The benefits of boosting loan to value
The answer links back to another recent article in The Express, which outlines the importance of the loan to value ratio when it comes to lenders making a decision on how much they’re willing to lend.
Essentially, if your property’s value increases then the loan to value ratio also improves, as the amount you need to borrow as a percentage of the property’s overall value is less.
Right now, there aren’t many areas where property prices are on the up. In fact, in a number of areas in the UK, property values are shrinking. So, news that Guildford property prices are bucking the current trend means that the amount those looking to borrow in order to buy in Guildford may increase. Or, at the very least, it means that lenders may be prepared to lend the required amount when it comes to a remortgage.
Of course, as Guildford mortgage advisers, it’s important that we fully assess our clients’ financial requirements and position in order to understand what is achievable, but news of a property price jump in Guildford means that many of our clients will now have a degree of flex that people in other towns may not.
It also means that the next few weeks are likely to be very busy indeed.
Are you considering a move? Looking to get a mortgage on a Guildford property? If so, contact our team of mortgage brokers in Guildford by calling 01483 238280 or e-mailing info@complete-mortgages.co.uk.
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