January 2017

Taj Kang welcomes you to his first vlog of 2017, and reveals what is predicted in the New Year. Looking at the housing market; especially First Time Buyers and the Help to Buy mortgage option, and it’s implications to contractors.


Happy New Year, and welcome to my first vlog of 2017. There’s a lot to look forward to in 2017, there’s already a forecast coming out for the year as far as mortgage availability is concerned, has a knock on effect obviously for any of you who are independent professionals.

So the Council of Mortgage Lenders has first of all looked at the economic outlook for the coming year and also made some predictions around mortgage lending and mortgage availability. So as expected Buy to Let is predicted to be subdued in terms of new purchase activity, the housing market has said is expected to remain robust over the next two years in fact, which basically means house prices are not going to drop, so any of you thinking of buying a property and waiting for that slump to arrive, the Council of Mortgage Lenders will not happen this year or next. What that basically means is as far as mortgage availability is concerned first time buyers are the market that, particularly the Treasury and the Government are keen to take advantage of record low mortgage rates.

Help to Buy, or part of it, has come to an end unfortunately. So those of you who are looking for a 5% deposit option with a lender, the government no longer supports lenders by guaranteeing 95% mortgages. However, there are quite a few mortgage options around for first time buyers who want a 5% deposit. So the positive is the Government has stepped away from supporting the lenders, but the lenders have continued to support first time buyers, which is great news.

There’s also more activity around building new homes on brownfield sites for first time buyers, as described by the new Chancellor in his Autumn Statement. So it looks like a very good year for first time buyers and indeed those of you who wish to re-mortgage, as far as mortgage availability is concerned. With remortgaging, there are record low rates available. The longer term fixed rate options are proven to be very popular in recent months, so this is predicted well into continue into 2017, before we get any rate increases.

So that’s just a summary of what we should expect in 2017, I will talk to you in a bit more detail about things as they unfold in the coming months, and the next thing on the radar is obviously for those of you who have Buy to Let properties. before that sting kicks in with the tax increases in April, you have a chance to do something about it in January, February and March, so better to take some advice as quickly as possible initially from your accountant. Many thanks for watching.