“Some people want it to happen, some wish it would happen, others make it happen.” – Michael Jordan
There has been plenty of news surrounding interest rates and mortgages over the last year and it is no secret that rates have been on the rise to tackle inflation. However, at the most recent Bank of England meeting, the Monetary Policy Committee chose to keep the base rate at 5.25% which indicates that they are comfortable with the progress that has been made so far. This is the first time it has remained the same after 14 increases in a row!
For those of you who have been wanting to move home, all this information may have you sitting and wondering whether now is a good time to start the process. So that you can make a more informed decision on whether to take the next steps, we want to share some reasons with you both for and against moving now.
NOTE – If you are currently tied into a deal and think this means you can’t explore moving – keep on reading!
“The secret to making progress is getting started” – Mark Twain
To start off with the positives, there is currently far less demand for properties which means you have a greater opportunity to be able to buy the ideal home that suits you and your loved ones.
With there being less demand comes a greater chance of being able to negotiate the price down on the property you want. During the process, you can email Kevin or Lilly with details of the property you have in mind and they will complete a desktop valuation for you. They will also give you their thoughts on the property’s value, give you tips on how best to present your circumstance when making an offer, and be a great sounding board throughout the negotiations.
Some of you may not know that even if you are tied into a deal with your current lender we can help you to ‘port’ your product. Most lenders will allow you to port your product, which is where you can keep your current interest rate on the loan amount and take it with you to a new property you wish to buy (subject to criteria). This means that you could avoid paying any early repayment penalties and keep the great rate you are tied to. If you need to borrow more money to make the purchase work, then you will only need a new product on the extra bit you wish to borrow. To check if your product is portable and you meet the criteria, please click here to book a chat with your adviser.
This could also be a chance to enhance your life. Changing your living situation can bring new and exciting opportunities, whether that be more space, a better location, or a fresh start. A home is where you should be able to feel most comfortable, therefore enabling you to create a nurturing environment for your family. As life is constantly evolving your home should ideally adapt to your changing needs. Whether you want more space for a growing family, or are looking to downsize in preparation for retirement, now is the time to explore your options.
Interest rates are higher than what we have been used to, but fixed rates have been improving over the past few months. The most common forecast is that interest rates won’t remain this high forever, and we may be at our “new normal” in about three years’ time. Therefore, although you will be looking at the rates available now, with the predicted future in mind – does it make sense to pay the higher rates now but have the choice to buy the home you want at the right price…?
With there being less demand for properties, there are less properties available. This means that it could take a bit longer to find the property right for you. It is also possible that property prices could drop.
Fixed-rate mortgages are now starting from 4.81% (as at 12/10/23). Most predictions remain that the Bank of England will start to reduce the base rate once inflation is under control. Buying a property is a long term decision, and with the average tenure of homeowners estimated at 17 years (source: OnTheMarket.com), it isn’t a short-term scenario so economic headwinds have always fluctuated during the average timeframe a person owns their property.
“The best time to buy a home is always five years ago.” – Ray Brown
We neither think it is a good or bad idea to move now……your circumstances and goals will depend on whether moving now is the right choice for you.
Either way, we do think it is a great idea to explore your mortgage options. We don’t charge any fee to explore your options and you have absolutely no obligation, so do make use of our expert advisers so that they can help guide you to a decision on whether to move now or set a plan in place to move in the future.
We hope you have found this informative.
Number One Mortgages