Boom Time for UK Borrowers with 40% to Put Down on Property!!
If you have the cash, maybe stashed away from months of Furlough Freebies then rates to borrow are as low as 1.2%.
Yes, 1.2% – lower than the inflation rate.
Following the pandemic buyers have been rushing out of cities to nicer locations and this is fueling a buying bonanza.
Youngsters Need Not Apply.
It’s of little surprise that those benefitting most are the wealthiest within the UK which means it’s mostly older people.
Nationwide Building Society reported year on year growth of 10.9% with much of this fuelled by the free money given away via the property Stamp Duty holiday.
Demand is outstripping supply, as it has done throughout the housing boom of the last 20 years or so.
Can Anything Stop the One Way Bet?
Besides ultra low interest rates, low supply and pent up demand what could possible derail the property price bonanza?
Further freebies provided by the UK Gov via Furlough may come to an end especially since the mass roll out of vaccinations.
Sources close to the government have been cagey with information as to the exact date support will end.
If a phased ending is brought in the property market may be cushioned. On the other hand if an abrupt end to Furlough is on the cards – this could seriously disrupt the property gains and send the market into freefall.
It’s possible lenders are factoring this in which is why these fantastic rates are only available to those with the highest amounts of hard cash to put in.
Watch this space!