The Intermediary – May 2025 - Flipbook - Page 85
re-entering the higher loan-to-value
(LTV) brackets, and there is growing
expectation that 95% LTV products
will become more widely available.
“We have already seen lenders join
the higher LTV brackets for newbuilds and I’m sure we’ll see more
lenders offering incentives to purchase
new-build due to their energy
efficiency,” Sokhi observes.
Anil Mistry, director and mortgage
and protection broker at RNR
Mortgage Solutions Ltd, describes the
local market as decidedly “buoyant,”
particularly in Leicester’s eastern and
south-eastern neighbourhoods.
He notes that, while many buyers
initially delayed decisions amid rate
uncertainty, “now that the base rate
has started to decline steadily, we’ve
seen a noticeable uptick in enquiries
and more clients looking to move
forward aer having offers accepted.”
This seasonal upswing is not
unexpected, Mistry says, but it has
clearly been accelerated by improved
rate expectations.
There has been a shi in product
preferences too, as Mistry reports
more clients opting for shorterterm fixed-rate products, “with the
intention of reviewing their mortgage
in a couple of years in the hope that
rates will continue to fall.”
However, he cautions: “Future rate
movements are never guaranteed, so
it’s important borrowers go in with
their eyes open.”
Dale Townsend, director and
mortgage and protection adviser
at Mortgage Bridge, adds further
evidence of strong demand: “Prices are
rising, but at a steadier pace than in
other parts of the country.
“Clients are definitely more
rate-aware, especially with all the
headlines around potential base
rate reductions.
“Lenders have been a bit more
competitive – not just with rates, but
New-build opportunities
RAVNEET SOKHI
senior new-build mortgage and
protection specialist at Just Mortgages
usiness has been extremely busy in the past few months as
expected with the changes in Stamp Duty – lots of clients were
looking for a very quick turnaround on their purchase.
More developers are offering Shared Ownership or their own
equity loan schemes to assist in affordability. We also saw the
introduction of the Own New scheme to aid with higher interest rates
and monthly mortgage repayments.
We are seeing more clients with low deposits wanting to get onto the
property ladder, but feeling that it isn’t possible. is is where Shared
Ownership can help for those with low deposits and low affordability.
For clients with low deposits and higher affordability, we are seeing a
lot of builders offering contributions towards their buyer’s deposit to
enable them to proceed.
e last few months have been my busiest yet, although I do feel like a
broken record saying this every year! I imagine we will continue with this
busy period as confidence with clients strengthens, affordability
loosens, and interest rates reduce.
With interest rates coming down, we are seeing an improvement in
affordability and borrowing capacity. We have already seen lenders join
the higher LTV brackets for new-builds.
I’m sure we’ll see more lenders offering incentives to purchase
new-builds due to their energy efficiency.
B
with tweaking criteria, especially to
aract clients like foreign nationals at
higher LTVs.”
Pricing trends
With years of economic upheaval
fresh in the mind, buyer behaviour in
Leicester has shied notably toward
greater price sensitivity.
Mistry explains: “One clear trend
is that buyers are now offering much
closer to the asking price, and oen
below it.”
This tends to lead to longer listing
times in some areas. In contrast to the
post-pandemic surge – when homes
could aract a dozen offers and sell for
£20,000 to £30,000 over asking –
bidding wars have largely disappeared.
The market has also become
more balanced, with buyers taking
a measured approach and sellers
needing to adjust expectations
accordingly. As Mistry puts it: “The
days of properties selling within
hours or days of going live are, for the
moment, behind us.”
Prevailing demographics
Leicester’s housing market is
underpinned by a dynamic and diverse
buyer base, reflecting both long-term
population growth and shiing socioeconomic paerns. →
May 2025 | The Intermediary
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