Boom! Time to get prepared!

We are going through a housing boom, with the number of sales quite literally, going through the roof!
According to HMRC, the number of home transactions was 213,120 in June, 216.1% higher than June 2020 and 108.5% higher than May 2021. That’s the highest monthly UK total since the introduction of HMRC’s statistics in 2005.
And of course, with increasing demand for houses comes an increase in prices, with the Nationwide recording a 13.4% year on year increase in prices for June, the biggest since 2004.
Demand for housing in places like Scarborough is really high, because of the trend toward working from home and a desire to do so from somewhere nice! Apparently, there has been a 100% increase in the number of people looking to move to the coast in the past year, according to Rightmove. That will push up prices in our area.
So what does this all mean and where does it leave people looking to move home or get on the housing ladder for the first time?
The first thing to say is, ‘don’t panic!’. The housing boom is partly being fuelled by the stamp duty holiday and once that goes back to normal things should start to calm down. We have to hope it does or more measures will need to be taken to help first-time buyers who will find themselves priced out of the market.
The most important thing to anyone looking to buy at the moment is, as any Boy Scout will tell you, to be prepared.
With houses shifting quickly you need to be quick off the mark when the home of your dreams comes on the market.
This means speaking to a mortgage broker before you start looking at properties to work out how much you can borrow on a mortgage and whether it will be affordable.
Get a copy of your credit report to check all the information is correct and there are no issues on the report which will impact on you getting a mortgage. There are a number of credit reference agencies out there. You will be surprised how many credit reports have incorrect information on them.
As you look to buy a new house, try to reduce your debts as much as possible and get your latest three months wage slips and bank statements.
You’ll also need proof of your ID and where you currently live as well as proof of your deposit and that credit report.
With all that paperwork at the ready, your broker will be able to sort out how much you can afford and get a mortgage in place BEFORE you go house-hunting.
For a free, no-obligation discussion on any mortgage or insurance-related issue, please give me a call on 01723 384558 or 07767 692 653 or email me at mgrayshan@googlemail.com

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