Mortgages easier to secure than people think

Mortgages can be easier to secure than some people think – even for those without a large deposit.

That’s according to a mortgage adviser who helps customers secure a brand new Redrow home.

Financial advisor Daniel Mumford, a director of Northampton-based Grange Mortgages, says that while lenders are still showing more restraint than a few years ago, there are some more positive signs and, contrary to popular belief, many people are able to borrow.

He said: “The mortgage market is showing some signs of recovery and it’s taking small steps in a positive direction, which we hope will only continue. There are more products coming out and we are certainly seeing some more competitive rates, even for people with smaller deposits.

“Lenders are also beginning to relax some of their criteria relating to credit scoring. Whereas previously we were getting straight no’s to many applications, lenders are now taking more time to consider applicants. In general, mortgage providers seem to have more of an appetite to lend.”

Daniel also believes buying from new build developers such as Redrow can have many advantages over purchasing second hand.

He added: “Sometimes developer incentives, such as help toward a deposit or paying legal fees, can mean the difference between someone being able to buy or not.

“There is also the added confidence you get from buying new, that there is no upward chain and you don’t have to worry about the chain collapsing if the purchase of the person ahead of you falls through. There’s also the cost saving implications of buying new as customers know that they won’t have to fork out for any costly repairs, maintenance or redecorating after moving in.”

Redrow is helping home hunters step onto and up the property ladder at developments across the South, including developments in Buckinghamshire, Cambridgeshire, Berkshire and Hampshire.

Daniel also believes the current climate is a great time for most people to buy: “In the longer term interest rates are at an all time low. We’ve probably now seen the bottom of the market and prices are beginning to slowly rise, but they are still affordable.”

And the strong demand for rental properties in the area, particularly in places within commuting distance to London, means investors could get a significantly higher return on their savings if they invest in property rather than leaving their money in a bank or building society.

“Wider availability of buy-to-let mortgages is playing its part in stimulating the housing market as we are seeing more investors returning. Lenders are reducing the size of deposits required and rates are becoming more competitive.”

Those cheered by Daniel’s comments would do well to look at Redrow’s homes in Milton Keynes, St Neots, Farnborough and Bracknell.

Well known for style and quality, Redrow’s high-specification homes meet the demands of modern lifestyles. Inside they feature the latest, statement-making kitchens, bathrooms and quality fixtures and fittings.

Redrow is building at Bletchley Park and Broughton Manor in Milton Keynes, at Loves Farm and Priory Gardens in St Neots, at Farnborough Central in Farnborough, and at Balmoral Gardens and Windsor Park in Bracknell.

Mary Timlin, sales director for Redrow, added: “It’s good news for would-be home owners that mortgages are getting a little easier to secure. However, purchasers should always speak to an independent mortgage broker regarding their ability to borrow.

“As well as the potential to gift a 5% deposit, we can tailor alternative incentives to help people to move depending on their circumstances. This could include taking their existing house in part exchange or fitting high quality carpets throughout their new home.”

For availability, prices and more information about your chosen development, log onto: redrow.co.uk