What’s Stopping You Getting on the Housing Ladder?
3 minute read
Will there ever be a better time to make your first step on the property ladder? That might seem like a strange question given the uncertainty following the recent EU referendum, but instead of worrying about the unknown, this could be the time to act. Despite the forecasts of impending economic doom by experts from all corners, the signs are that the UK’s decision to leave the EU probably won’t live up to these pessimistic predictions. Yes, the base rate has been cut to stimulate the economy, but the FTSE has rallied to a 14-month high, and while the pound has fallen, this has actually been beneficial to many parts of the economy. The truth is that there is economic uncertainty, but we live in an uncertain world. The one thing we can take control of is our own destiny. And, if buying a property is at the top of your list of things to do, now could be the right time.
The Base Rate Has Been Cut
The Bank of England has cut the base rate of interest to just 0.25%, which means there should be a more competitive range of mortgage deals on the market; and not just for those with a squeaky clean credit record.
Mortgages Are Readily Available
There are enough mortgage products on the market to meet the particular needs and circumstances of almost every borrower. While you might once have had to be a PAYE employee with an excellent credit record and a hefty deposit to find a competitively priced mortgage, the mortgage market is now much more in tune with the needs of borrowers. Here are just a few of the specialist mortgages available: – Bad/adverse credit mortgages – Contract employment mortgages – High loan-to-value mortgages – First-time buyer mortgages – Self-build mortgages – And many more…
Growth in House Prices is Slowing
Although house prices in the vast majority of the UK are still rising, the rate of growth has slowed quite dramatically. This is putting homebuyers in an excellent position to negotiate discounts on asking prices as sellers adjust their expectations. Buyers are also becoming more demanding as they seek deals that will insulate them from possible future price falls as the UK economy continues to stabilise following the Brexit result. Research shows that in May, even before the referendum result, stamp duty surcharges and impending buy-to-let tax increases had started to take their toll on the market, with the average discount on the original asking price of a property at over £25,000. This was up nearly £4,000 compared with January. Even if a property is discounted already, first-time buyers should not assume it is a steal – it may have simply been overpriced in the first place. Vendors who need to sell will now cast their optimism aside and accept a more realistic price. If you’d like to explore your options as a first-time buyer, now would be a great time to talk to our mortgage experts so please get in touch with our team today.