Boris’s 95% Mortgages – Sky Rocket 🚀 or Crash & Burn? 💥

So what a week it’s been, Boris has decided to pump the housing market with 95% LTV mortgages as well as the stamp duty...

So what a week it’s been, Boris has decided to pump the housing market with 95% LTV mortgages as well as the stamp duty cut and we’re all still suffering under the weight of Covid.

So where are we in the North East property market?

As you all know we’re unable to socialise beyond our bubbles in the North-East and hopefully we’re still managing to stay in contact with friends and family via other means but this seems largely to have not effected the property market.

In regard to lettings it’s still incredibly strong, we’re letting property incredibly quickly and in all honesty have never been so busy. I think there are a couple of reasons:

1. The general market remains buoyant but also I think there might be people deciding to move just in case lockdown happens again. There might be a little bit of pent up demand because of that. Also I think you can’t spend your money on anything else at the moment, with people largely staying away from pubs and restaurants. So maybe that money is being invested into a housing upgrade?
2. Internally this year we spent a lot of time investing in our prospective tenant database, it currently has 4,000 people on it. It’s something we’ve invested a massive amount of time in and as a result whenever we send out an email to that database our phones become really HOT 💥 Which is a definite improvement we’ve made.
3. I’d say coming up to Christmas, if you do have an empty property get in contact as soon as possible so we can pump your property through our database to get it let as quickly as possible.

Sales wise, again we have the stamp duty affect persisting with lots of sales happening really quickly. We recently put on the market an 11 property portfolio a landlord is selling – the properties being all tenanted. We’ve seen massive demand for that portfolio, having sold one of the properties in 6 hrs, it must be a record for us 😁

As mentioned Boris has announced his intention to turn generation rent into generation buy by boosting the availability of long terms mortgages with a small deposit.

He said: ‘We need now to take forward one of the key proposals of our manifesto of 2019: giving young, first-time buyers the chance to take out a long-term, fixed-rate mortgage of up to 95 per cent of the value of the home – vastly reducing the size of the deposit.”

I think this is massively beneficial for the North East property market – the biggest issue in the North East isn’t affordability, our properties are some the cheapest relative to income in the UK. I think we still suffer an overhang from the banking crash in 2007, where property prices haven’t fully recovered and so there’s lots of people with low or no equity. This means large parts of the property market remains stuck but once house prices go past their 2007 peak (we’re not far away now) + with high LTV mortgages I think this will be the grease we’ve been looking for to get the North East property market really motoring.

See a video from my brother Chris and his thoughts…

PS – If you’re interested in getting started in property investing or want to add to your portfolio contact:

Sarah Donnison (Sales & Investments) who has some tenanted properties available at the moment.

They’re absolute crackers mainly £70k – £90k with rents between £425 & £525 pcm.

Give us a bell today ☎️ – Sarah Donnison 0191 491 0344 Option 1 or 🖥 E: sarahdonnison@nguhomelettings.com