Predictions for mortgages for 2104

David Lauder tells us about recent mortgage market activity and gives his predictions for 2014.

Q: Have there been any changes in the mortgage market recently?

htb_logo_rgb smA: Confidence has been increasing in the market and more mortgages are available for both residential and buy to let home owners. This has resulted in even more favourable interest rates than the start of 2013. The launch of the Help to Buy schemes, allowing buyers to purchase a property with a 5% deposit has also proved very popular. It is early days but I anticipate that this should bring even more buyers to the market. Overall 2013 was a very busy year, the busiest for us in at least four years with more people buying homes and homes selling quicker.

Q: Have ESPC Mortgages been busy?

A: Yes is the short answer! It’s been our best year since 2009 at least, with more clients looking at buying houses for residential purposes or buy to lets. Additionally, the Government schemes have introduced more options and means more people are eligible for a mortgage.

Q: What sort of clients have you been seeing?

A: All sorts really. Existing ESPC clients who we have dealt with before who are needing advice to buy their next property, also clients looking at the buy to let market so buying for investment purposes but the vast majority are first time buyers, they need our help and we provide a good service taking them by the hand through the whole process which they find very helpful. We get lots of different enquiries from the ESPC showroom and whilst we can’t help them all depending on their circumstances but with more options available we are being to help more.

Consultation with David Lauder

Q: What questions do you get asked most commonly by clients?

A: How much can I borrow? How much will my payments be? What size of deposit do I need? Explain the whole buying process to me, how long does it take? What are mortgage providers looking for when assessing your circumstances?

Q: Have you noticed any trends/themes in the types of mortgages people are applying for?

A: Fixed rates are still proving very popular. With the Bank of England rate so low people are taking the view that if it the rate does move it will go up so they prefer the stability. People with 25% deposits or more tend to fix for longer to take advantage of the lower generally fixing a 3-5 year period.

money, finances, affordability

Q: What steps would you recommend people take when seeking financial advice?

A: Make sure you deal with someone you can trust, have a good understanding of your finances (monthly income and expenditure) and also your circumstances. Have a clear idea of what you want to achieve to help the advisor. Be open and transparent about your financial matters. Being organised can make the whole process a lot swifter and easier!

Q: Do you have any forecasts about what may happen in the mortgage market in 2014?

A: I would be a rich man if I could forecast accurately but personal opinion is activity will remain busy. The Help to Buy schemes will likely get more popular which will be one of the main reasons and will help the whole market, not just first time buyers but also those that are looking to move up the property ladder.If volume continues at this level for a sustained period of time there may be a small increase in rates and also a continued gradual increase in house prices which I think we are beginning to see, however there should continue to be a good amount of mortgage options available with lenders wanting to lend money.

Crystal ball

To find out more why not pop into the ESPC showroom for a chat with David or another member of our ESPC Mortgages team.

About David

David LauderDavid Lauder is Mortgage and Financial Planning Consultant who helps clients find the most suitable mortgage solution tailored to their circumstances along with identifying any other gaps they may have in their finances.

Call him on 07810 522 422.

Read some of David's other articles


The initial consultation with an adviser is free and without obligation. Thereafter, ESPC Mortgages charges for mortgage advice are usually £350 (£295 for first-time buyers). YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOANS SECURED AGAINST IT.