It’s a Buyer’s Market at Present, And It Will Be For Quite Some Time.

The Royal Institute of Chartered Surveyors has recently issued a report stating that sellers are returning to the property marketplace, though it tempers this optimism with news that the overall picture remains “subdued”. A growth in the supply of properties for sale in April has probably increased the downward motion of house prices, and suggests supply is outstripping demand.

The number of buyers viewing property has also increased – helped in part by some excellent weather at Easter – but continued problems in obtaining mortgage finance is hampering many potential purchasers. Unless buyers have a good sized deposit, it is tough to obtain the mortgage they need to buy property.

A Housing Spokesperson from the RICC recently stated that the increase in houses on the market is positive news for potential buyers, although there still does not seem to be much going on in the way of buying and selling, and he doesn’t expect this to change any time soon.

Indeed, the majority of Brits don’t expect property prices to rise over the next year.  A recent survey from the property company Rightmove found that 68 per cent of people think house prices will be broadly the same or higher than they are now in twelve month’s time.

This optimism of property prices is welcome and extremely exciting news after several years of dropping property values, inability to obtain finance and houses sat on the market for months and months without any interest or hope of a sale.

It is vital to bear in mind that those buyers who have the capability to place a larger deposit, typically one of more than 10%, are likely to get access to a better mortgage rate. Others might find it hard to access finance in the current wintery economic climate.

Those who manage to secure the necessary funding to buy new properties or to move up the property ladder should consider a remortgage. As the cost of borrowing is still at an all-time low, those who are approaching the end of their fixed term mortgage deal might benefit from accessing reduced monthly instalments. They can do this by checking remortgage deals, and finding a new mortgage with a rate. Monthly savings could be set aside to finance a deposit with which to buy more expensive property at a later date.

People who have been unable to finance a brand new property may still have the option of remortgaging their current home, either to raise capital to upgrade the existing property, or to simply obtain a cheaper deal which can help with monthly outgoings. Obtaining a further advance remortgage may also allow you to secure your debts against your home, as mortgage interest rates are generally much lower than those on unsecured debts.

By obtaining a remortgage, you can lower your monthly repayments while you wait out the storm, and then perhaps look to sell again in the future when your property value has recovered and you can get a more attractive price.

Most market experts agree that property prices are all likely to increase in the coming years, so it may be worth the wait to get a little more of a return on your investment.

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