The weather may not be quite up to scratch but there’s no denying that summer is well and truly here – if only in spirit. With holidays on the horizon for many people, now is the time for sun, sea and sand. As the annual pilgrimages to warmer climes begin, this can often result in longer completion times. Here’s how we’re bucking the trend and ensuring your clients receive the best possible service regardless of what else is happening – and the issues they’re facing.
A slowdown in completion times
Summer can be a tricky time in the property world. Notorious for the so-called ‘summer slowdown’, sales can often reduce in pace as people utilise the school holidays to go away while transactions can also be affected by the lack of manpower. With Rightmove reporting back in May that it took an average of 154 days between agreeing a sale and legal completion, the looming summer slowdown could cause further frustrations for buyers and sellers alike.
The bigger picture
Unlike previous years, 2024 is unique in the fact that we’re now coming to grips with a new government. Historically held in May, this year’s election was the first to be held in July since 1945. While Parliament had been scheduled to rise for the summer recess on 23rd July under the Conservatives, that date was invalidated when Rishi Sunak dissolved the last Parliament back in May. Labour are yet to confirm recess dates for the 2024-25 session but it is likely that the recess will be pushed back and shortened.
The new chancellor Rachel Reeves has been clear about some of the party’s intentions in regards to the property market – including overhauling the planning regulation process as well as building new homes – but we may not get the full picture until the next budget, the date of which is also yet to be announced. This not-knowing can create an additional layer of uncertainty for borrowers and lenders.
Open for business
Regardless of what’s happening in the wider economy, we remain committed to supporting you and your clients via our range of buy-to-let mortgages and regulated and unregulated bridging loans.
For those who want to avoid any delays caused by the summer slowdown, a bridging loan will allow them to quickly secure funds while giving them the breathing space they need to finalise their long-term plans. An automated valuation model (AVM) could speed up an already quick and streamlined process, as long as your client’s property meets our criteria. This includes:
> Available for regulated and unregulated bridging finance applications
> Standard residential property only
> Up to a maximum of 60% LTV
> Up to a maximum property value of £750,000
> Minimum Hometrack confidence level of 5+
> Up to a maximum loan size of £450,000 – including cases involving multiple securities
> First and second charges
Our buy-to-let mortgages have also been designed to offer certainty and flexibility. As we continue to wait for a drop in the Bank of England base rate, we have worked hard to alleviate some of the pressures landlords and investors are facing. This is why our five-year products are stress-tested at 125% across all tax brackets, which can translate into borrowers needing a smaller deposit.
If you would like to find out more, then we are always on-hand to answer queries you have or discuss a potential case. Simply fill in our online form and we’ll be in touch shortly.