First Time Buyers Taking Advantage of Interest Rates Likely to Return for Benefits of Remortgage
More surprises have been revealed in the housing market in the latest report from UK Finance. January data showed that first time buyers showed up and took advantage of the current state of the market by an increase over January 2018 by 4.6%. There were 25,100 first time buyers completed in January.
The surprise came due to many factors with one being that due to the uncertainty in Brexit consumers would shy away from committing to large debt such as would occur in a home buy. Another factor that was expected to keep buyers away was that home sellers are holding onto their rather high asking prices. A push to sell has not made them aggressive in the market which leaves properties on the market for longer as they wait out for the right purchase price.
Sellers are willing to keep their house on the market longer for their desired purchase price because they can. The volume of new homes coming into the market is low and with supply much lower than demand, it is the seller who reigns in the housing market and they can and do hold out to make the best deal.
Perhaps the reason that first time buyers were optimistic and willing to come to terms with home sellers is that low interest rates are still available from lenders. While the housing market might not be as competitive for sellers, the lending market has lenders fighting to gain the attention of borrowers. That is paying off for those willing to push aside the fear warnings concerning Brexit and reach their goal of homeownership.
These same first time homeowners which have taken the opportunity the lending market is offering them despite a less than friendly buyer’s housing market are perhaps the most likely to also return to the lending market in the years ahead to take advantage of remortgage opportunities.
It is that same opportunity that experts encourage all current homeowners to consider, that of remortgaging for a more secure and long term fixed interest rate to offer a safety net against the uncertainty in the economy, rising interest rates, and a tightening in lending that might occur.