Advice given to potential home purchasers
A recent report has shown that house movers and first time buyers are confused over whether they should purchase a property now given the predictions over falling house prices and interest rates, with many unsure as to whether they should take the plunge or adopt a wait and see stance. A number of analysts and economists have predicted that interest rates could plummet by the end of the year, and many have predicted that house prices will continue to tumble.
One mortgage broker stated: ‘The days of buyers scrambling to get on to the housing ladder at any cost are well and truly over. ‘Buyers should think hard about why they want to purchase. That is not to say they shouldn’t buy, but they should ask themselves whether it is the right place they are purchasing and whether they are paying the right price.’ He added: ‘Given the current climate of stagnant house prices and rising mortgage costs, it is more important than ever to take a long-term view of any purchase. The days of quick capital gains are gone.’
He did also offer additional advice, stating that those that do decide to take the plunge may want to look at taking out a fixed rate mortgage for at least several years if they had concerns over managing repayments in the event that interest rates rise. However, it may not be all that easy for buyers to get the finance that they need to make a property purchase at present, with many experts stating that tighter credit conditions resulting from the global credit crunch will make in increasingly difficult for many would-be buyers to get the mortgage that they need.
Recent additions:
- Many first time buyers facing soaring mortgage rates
- Darling addresses long term fixed rate mortgages in budget
- No change in interest rates for March
- Buy to let mortgage figures soar
- Mortgage brokers banned due to false applications
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