We know when you’re thinking of buying or selling, one question that always springs to mind “is now the right time.” We agree timing can be profitable but with mortgage lending at its highest level since 2008, there now is a financial reason to move. There is no doubt that the Governments Help To Buy scheme is helping people get on and move up the property ladder as is the number of favourable mortgages available at the moment.
Craig McKinlay, mortgages director at Halifax, said: “Although the average price of the typical first-time buyer home has grown by 10% in the past year, the number of buyers taking that first step onto the housing ladder has been supported by favourable economic conditions; namely, record low mortgage rates, rising employment and real pay growth.” First-time buyers are tending to opt for the longer term of 35 years rather than the normal 25 according to recent research. Other data confirms that the number of first-time buyers is increasing due to the number of transactions in November 2015 rose by 23.7% from the previous year.
According to Moneyfacts.co.uk, mortgage costs fell to a low of 2.56 per cent in 2015. Charlotte Nelson, finance expert at MoneyFacts, said; “Anyone looking for a fixed-rate mortgage now should act fast to secure the best deal.” The only way now for mortgage rates to go is up, and all eyes are on the Bank of England, although the governor Mark Carney only this week ruled out any imminent increases. The UK base interest rate has been at a record low of 0.5 per cent since March 2009, since which fixed rate mortgages have been extremely popular as borrowers wish to lock-in their monthly mortgage payments in case of any pending rises.
Although fixed rate mortgages offer security and peace of mind, there are an increasing number of tracker mortgages with interesting deals on the market at the moment. But does it offer the same security? John Charcal mortgage broker, Simon Collins says “Some lenders offer managed variable rates that are based on their own rate rather than the Bank of England. So if the Bank of England rate rises, your mortgage won’t necessarily increase. It is all down to personal circumstances and affordability. There are still some good tracker and variable deals out there but you need to look out for early repayment charges. If you are likely to get hit by even a 0.5 per cent rate rise then you should probably bite the bullet and go for a fix rather than a tracker.”
If you are looking to buy a new home, check out all the financial options open to you as understanding what you can afford and having a mortgage in principal will stand you in a strong position when you are ready to make an offer. No one can predict when rates will rise although we know it isn’t imminent, you can take advantage of the low mortgage rates open to you at the moment.
With our in-house mortgage adviser being able to search hundreds of deals to find the best option suitable for you and your needs, at Ainsworth Lord Estates we are the complete solution for whether you’re buying, selling, letting or renting a home in Darwen..