Demand for £1m plus mortgages buoyed by City bonuses
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City bonuses paid to traders at investment banks have triggered a rise in demand for £1m plus mortgages, according to wealth manager HFM Columbus.
HFM Columbus says that following a flat period at the top end of the market, the return of controversial City bonuses has triggered a renewed round of activity for seven figure property loans.
The company says that most of the demand for high-end mortgages is for properties in London and the Home Counties.
Gary Festa, mortgage specialist at HFM Columbus, says that factoring in City bonuses the kind of figure being discussed for a deposit for high-end properties is approximately £300,000.
He says: “We are starting to see positive movement in the high net worth end of the property market, where good houses and apartments are being snapped up.
“The bonus season has always been a traditional stimulant for the relatively smaller pool of players who can afford the premier league homes, and of course this part of the business all but disappeared in the dark days of the credit crunch.
“But we would appear to be entering a new period of growth in the market.”
HFM Columbus is also reporting renewed interest from investors in commercial property.
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Readers' comments (1)
Anonymous | 27 Oct 2009 3:44 pm
No doubt they will be done on a self cert basis before they are banned then !
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