Buying a property in the North East is an exciting prospect, but understanding the mortgage landscape in the area is crucial to making a sound investment.
Whether you’re a first-time buyer or looking to upgrade, here’s what you need to know about mortgages in the North East of England.
Regional Property Prices and Mortgage Needs
Property prices in the North East tend to be more affordable compared to other parts of the UK. However, recent years have seen an increase in housing demand, leading to a competitive market. This shift can affect mortgage offers, especially with lenders tightening criteria and requiring higher deposits for properties in popular areas like Newcastle, Durham, and Middlesbrough. Ensure you’re clear on property value trends in your preferred areas, as this can impact your loan-to-value (LTV) ratio and the types of mortgage offers available to you.
Types of Mortgages Available
The North East market offers a variety of mortgage options, from fixed-rate and tracker mortgages to discount and offset mortgages. Fixed-rate mortgages provide consistent payments, which can be ideal in an unpredictable economic climate. Meanwhile, tracker mortgages fluctuate with the Bank of England’s base rate and can offer lower initial rates, though they come with more risk. Consider consulting a mortgage advisor who understands the North East market to help you choose the best option for your financial situation.
Help to Buy Schemes
The North East benefits from several government schemes, such as Help to Buy, which can be advantageous for first-time buyers. These schemes allow you to purchase a home with a smaller deposit by offering an equity loan, making it easier to secure a mortgage with more favourable terms.
Local Lender Insights
Local lenders often have a more thorough understanding of the North East market and may offer mortgage products better suited to your needs. Partnering with a local lender or broker can provide access to exclusive deals and insights that larger national lenders may not offer.
Preparation is Key
To improve your chances of mortgage approval, ensure you have a solid credit history, proof of income, and savings for a deposit. In a competitive housing market, a pre-approval letter can also strengthen your position with sellers.
Buying in the North East can be a rewarding investment, and by understanding mortgage options and working with knowledgeable professionals, you’ll be well-equipped to secure the best possible deal.
For more information, visit www.bradleyhall.co.uk or contact Bradley Hall’s Mortgage expert, Gary Dobson on 0191 383 9999.
