What do the new Enness Global stats say about property sales?
September 12, 2020 by Heidi
Property Market
New research by Enness Global looking at UK property sales has found that sales financed by mortgage loans are currently resulting in 10% higher prices than those bought using cash.
The company is attributing this sizeable disparity in price to the fact that UK interest rates are currently at record low levels. It argues that this is leading to an increase in demand among buyers and allowing them to borrow higher sums from mortgage lenders than they would normally be able to.
It is the North East that is experiencing the largest disparity, with the average price for a house purchase financed with a mortgage loan being 15% more than that of one paid for in cash. Not far behind, there is a 14% difference in the average prices between the two different types of property purchase in the North West, as well as Scotland.
This is not the situation everywhere though, with average prices for homes in London bought using mortgage loans being 5% below those for cash buys.
Speaking to Mortgage Introducer, Islay Robinson from Enness Global said that it was low interest rates and the stamp duty changes that were driving demand, adding:
“With those securing a mortgage currently able to do so at such favourable rates, many are borrowing that little bit extra to either buy bigger or in a better area.”
This is positive news for the mortgage sector and will likely have more people clamouring to complete a CeMAP training course.
Written by
Heidi
You may also interested in:
Almost half of buyers securing price discounts
The latest research has found that almost half of the buyers in the UK are securing their homes at
Most first-time buyers do not understand mortgage process
The vast majority of people looking to buy for the first time do not have a clear understanding of
