2024 Budget Highlights: What It Means for Homebuyers
Budget Reaction with Heron Financial
Following the 2024 Budget, we asked Matt Coulson, Director & Principal of Heron Financial – one of the leading Mortgage and Protection firms in the UK, to break down the key points and share his insights, particularly for those looking to buy their next home.
The new UK budget brings a mix of developments for prospective homebuyers, but there’s encouraging news for those considering a purchase.
Expanding Housing Supply
With a £5 billion investment in housing, including new builds and land regeneration, the government is aiming to increase availability across high-demand areas. Largely focused on affordable housing, with £3.1B specifically allocated to that sector, but a positive sign that this government is committed in the long term to finally start to meeting our housing needs.
Stable Mortgage Rates and Enhanced Lending Options
The market response to the budget has been relatively calm, with limited volatility in gilts and swaps, creating a more stable environment for mortgage pricing. This predictable outlook benefits buyers as many lenders continue offering competitive deals.
Recent lending enhancements include:
- Income multiples up to 5.5x or even 6x for eligible borrowers.
- Expanded support for foreign currency income.
- Higher loan-to-value options for new builds.
- Enhanced affordability for energy-efficient homes.
- Support for schemes like Own New Rate Reducer.
These measures, along with a calm financial market response, mean homeownership is more accessible and mortgage options are increasingly favourable.
A Positive Path Forward
With increased housing supply, stable rates, and expanded mortgage options, this budget offers strong opportunities for buyers. Whether securing a mortgage or watching for future adjustments, it’s a promising time for those ready to take the next step.
For more financial advice please book a call with Heron Financial directly: https://app.heronfinancial.co.uk/berkeley-group
Disclaimer - The views expressed in this article belong to Matt Coulson, Director & Principal of Heron Financial.