Forecasters suggest that by 2026 house prices within London and surrounding regions will rise by 25%.
The predicted boom in property prices is said to be a result of increased demand to live within the city, as a result of people returning to work in offices again.
Another factor that may be contributing to the growth is the return of buyers from overseas. With overseas travel opening back up more people are anticipated to buy properties, further increasing demand.
What are the implications?
With house prices rising, people will need to save up larger deposits in order to get a good mortgage deal, but this could take a while.
Due to this, family members and friends may be more inclined to gift money in order to help towards deposits.
Although this is positive and can be extremely helpful to people who otherwise may have been unable to afford the property, there can be complications with gifted deposits.
One of the main difficulties is that many lenders won’t accept these types of deposits and therefore mortgage options can become a bit limited.
This could pose great challenges and may make getting on the property ladder even harder for people.
How can The Loans Engine help?
The Loans Engine is a finance broker who predominantly focuses on helping customers who have been rejected by high street lenders.
One area the company can assist with is when customers are having difficulty purchasing a house, due to gifted deposits.
Their range of specialist lenders have products with particularly flexible criteria, which means that they can accept any type of deposit on a house purchase.
For customers this is positive and could provide them with the flexibility they need to purchase a house. As a result, it could help more people get on the property ladder, despite house price rises.
The company can also help in other situations where customers have been declined for purchase products. This includes circumstances such as bad credit, right to buy and shared ownership schemes and self-employed customers.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
