Should I buy a property right now?
A common question we are being asked from our clients is should I buy a property right now, or should I hold off until interest rates come back down. Adam Nanson from Your Mortgage Expert provides the October Mortgage Market Update:
“In response to the mini budget from the new Chancellor, we have seen mortgage rates rising to over 5% for the first time in years. With the average 2 year fixed rates being around 6.3% at the time of writing this*
This has lead to many of our clients asking whether they should stave off buying a property right now. As we say later in this blog, we don’t know what is going to happen to interest rates. While there are some that think they will start going down again in a year or so, we just don’t know. And, it is unlikely that they will ever go down as low as during the Covid times. In fact, many predict that higher interest rates are here to stay**.
“These are the main things we have been telling out clients:
- Stamp duty relief means that, for many, the cost of purchasing a property is slightly lower right now. And, although the Government claim this is a permanent change, there are no guarantees.
- We can’t be certain what is going to happen with the housing market. Lou Fletcher from Piccolo Sales and Lettings provides a further update to this in our blog which you might find useful.
- After many lenders pulled products from the market initially following the mini budget, Lenders are coming back into the market and some have already reduced their rates.
- The Bank of England is looking to stabilise things and the budget announcement to be brought forward is a positive move to further stabilise things.
“Ultimately, it can be very difficult to predict the market, especially right now. So whether to buy right now depends on your personal situation. Trying to time the market could be a mistake. And remember, if you are buying a home to live in, it is a long term investment that you will hopefully enjoy for many years to come.”
We would advise you to speak to your mortgage broker to establish how much your monthly payments are likely to be. And also your local estate agent to establish what stock is available on the market.
If you are asking should I buy a property right now or if you have any questions after reading the October mortgage market update, please get in touch. We don’t charge anything up front, so by speaking to us, you are under no obligation. We are based in Salisbury, Wiltshire, but we can help you no matter where you live in the UK.
**Source: https://www.telegraph.co.uk/business/2022/10/12/higher-interest-rates-not-transitory-stay/
The information contained within this article was correct at the time of publication. It is intended for information only and does not constitute advice. Your Mortgage Expert Ltd and Mortgage Advice Bureau cannot be held responsible for information that was correct at the time of publication but subsequently changes or goes out of date due to changes in legislation.
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