Mortgage Mayhem: How Rising Costs are Impacting UK House Sales
The UK housing market is experiencing a significant downturn, with the latest figures from HMRC revealing a 25% drop in residential transactions in April. This decline is largely attributed to rising mortgage costs, which are making it increasingly difficult for would-be buyers to enter the market.
“The spring and summer months typically bring more demand to the housing market, but while inflation has finally started its descent, high mortgage rates could continue to put a dampener on transactions as moving home or taking the first step onto the property ladder becomes increasingly unaffordable,” said Karen Noye, mortgage expert at Quilter.
The UK housing market is experiencing a significant downturn
The Bank of England’s decision to hike its base rate to 4.5% in May has led to lenders increasing their mortgage rates, making it even more challenging for buyers to secure a mortgage. However, with a decrease in demand, competition between lenders may keep any rises at a more reasonable pace than the highs witnessed at the end of last year.
In a bid to address the challenges faced by foreign nationals seeking to buy a home in the UK, Nottingham Building Society has launched a new mortgage product tailored to their needs. This innovative solution allows applicants without any UK credit history to secure a mortgage, making it easier for skilled international workers to settle in the UK.
Nottingham Building Society’s new mortgage product for foreign nationals
“This is a fantastic solution, one we know brokers have been crying out for,” said Alison Pallett, sales director at Nottingham Building Society. “We hope it will empower more borrowers from overseas to realise their homebuying dream in the UK, particularly those new to the UK who struggle to demonstrate their credit history.”
The launch of this new product coincides with rising numbers of foreign nationals entering the UK workforce, particularly in the healthcare and IT sectors. Last year, over 325,000 work visas were issued, with projections suggesting this could surpass half a million by 2028/2029.
Foreign nationals are playing a crucial role in the UK workforce
As the UK housing market continues to navigate the challenges posed by rising mortgage costs, innovative solutions like Nottingham Building Society’s new mortgage product are essential in supporting the growing number of foreign nationals seeking to make the UK their home.
“It’s a proud moment for us to be able to introduce this exciting new product; one that will transform the homeownership prospects for the growing number of foreign nationals coming to live and work in the UK,” said Praven Subbramoney, chief lending officer at Nottingham Building Society.
In conclusion, the UK housing market is facing significant headwinds, with rising mortgage costs and decreasing demand. However, with lenders and building societies like Nottingham Building Society introducing innovative solutions, there is hope for those seeking to enter the market.
The UK housing market outlook remains uncertain
As the market continues to evolve, it’s essential for buyers, sellers, and lenders to stay informed and adapt to the changing landscape. With the right support and innovative solutions, the UK housing market can navigate these challenging times and emerge stronger in the long run.
