The Intermediary – February 2025 - Flipbook - Page 79
caution due to the cost-of-living crisis
and rising interest rates.
As a result, there has been a
resurgence in Shared Ownership
schemes, which were last widely
popular in 2021, as well as increased
reliance on family support.
Clarking observes that while
activity remains strong, properties
are also taking a bit longer to sell
compared to the previous year.
National trends
Mortgage trends reflect a market that
is both cautious and active, shaped
by economic conditions and evolving
buyer priorities.
Simon Burne of Burne
Mortgages highlights the market’s
steady performance despite national
economic challenges. Nevertheless,
he notes that while house prices have
soened, affordability remains a key
issue – particularly for first-time
buyers and families looking to upsize.
In addition, interest rate
fluctuations have played a significant
role in shaping mortgage activity.
Burne explains: “When rates
initially increased, I think most
buyers took a ‘wait and see’ approach,
but with a reduction in the Bank
of England base rate, we’ve seen
confidence return.”
This has led to an increase in
mortgage applications as buyers
regain a sense of stability in their
borrowing options.
Oliver has observed a growing
appetite for residential mortgages,
supported by an increase in average
house prices and the number of
properties purchased with mortgages.
However, he cautions that rising
mortgage rates may impact future
borrowing trends, as some buyers
reassess affordability before
commiing.
Remortgaging activity has also
surged, with homeowners eager to
Stable demand
LIANE CLARKING
adviser at Ideal Financial Management
ith more and more people working from home, properties
with a potential home office space are increasing. Our key
demographic consists of first-time buyers, growing
families looking for their forever home, and BTL investors.
Over the past year, more clients are opting for longer fixed-rate
mortgage deals due to concerns about rising interest rates, seeking
longer stability, along with an increase in the number of people turning
to independent mortgage brokers to ensure they secure the best deal
available across the whole of market.
Doncaster has seen ongoing regeneration, including the
redevelopment of Doncaster city centre and improvements in transport
links. e GatewayEast development is expected to bring further
investment, while new housing developments in areas like Bessacarr,
Edenthorpe, and Armthorpe remain popular with buyers.
Upgrades to rail and road infrastructure are also making Doncaster an
increasingly attractive location for commuters.
W
secure a deal before facing higher
monthly repayments.
Clarking says: “Over the past few
months, there has been consistent
demand for residential mortgages,
particularly among home movers.”
Bingham adds that many
prospective buyers are actively seeking
clarity on their borrowing capacity, as
they navigate affordability challenges
and evolving lender criteria.
Another trend is increasing demand
for energy-efficient homes. Clarking
notes: “Buyers are paying closer
aention to Energy Performance
Certificate (EPC) ratings. Lenders now
offer a separate product for energy
efficient properties for both home
movers and remortgages.”
Buyer demographics
Affordability is a challenge
throughout the region, particularly
for those looking to enter the market
for the first time.
This has been further compounded
by increasing mortgage rates,
influenced by higher Government
borrowing and elevated 10-year gilt
yields, which could present additional
hurdles for prospective buyers.
Despite these challenges, Burne
points to a notable uptick in firsttime buyer activity, saying: “Firsttime buyers seem a lot more active,
particularly those receiving family
support for deposits.”
However, he also highlights a shi
in borrower demographics, with
more individuals in their 40s and
50s remortgaging or investing in
property, as well as a growing number
of self-employed applicants seeking
specialist products.
There has also been an increase
in the number of buyers turning to →
February 2025 | The Intermediary
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