UK Housing Market Experts Warn Home Buyers and Homeowners to Prepare

UK Housing Market Experts Warn Home Buyers and Homeowners to Prepare

The UK housing market already is showing signs of slowing down. Hopeful home buyers are likely becoming less enthusiastic about buying at least right now. Asking prices are still high, with higher interest rates borrowing is more expensive, there is still low supply of available properties on the market, and with inflation it is difficult to save for a deposit. Unfortunately, the desire to become a homeowner has been made more difficult in a short few months and it is expected to get worse.

Without buyers in the market, especially first time home buyers, the housing market will slow. Some may see it as a possible boost to buyers that without strong demand house prices will decline, but there are other factors to consider. The housing market is a vital part of the UK economy and without a strong housing market the economy could face great difficulty. The impact would be felt widely and in many different ways, but it is a fact that when the economy slows and falters it impacts everyone in some way.

Inflation is definitely taking a toll. The target inflation rate set by the Bank of England is 2.0% and there are warnings that despite higher interest rates the rate could reach 11.0% by autumn. In simple terms, it means that the cost of living is going to be more than 5 times more expensive than it would be if inflation was at target.

It is time to save. It is time to prepare. It is time to plan and set into place a strategy to protect one’s financial health and in doing so likely have a positive impact on one’s mental, emotional, and physical health in the near future.

It’s not like tough economic times are new, it’s just this one is following a long two years of dealing with a global pandemic that is still lurking in the shadows. 

For hopeful home buyers it’s time to take a hard look at the ability to afford a home as well as the ability to afford the mortgage repayments should their interest rate increase. It would be helpful to talk to a lender or broker and truly understand how different mortgage types work, why in this current economic state it would be helpful to find a fixed rate deal, and why it is a good idea to look far ahead to when it will be time to remortgage.

Homeowners should definitely be looking ahead and setting up a smart financial strategy. There are opportunities in remortgaging currently, and so much so that some homeowners long away from their mortgage term ending are choosing to pay a penalty to end their term early for the chance to remortgage. 

Those that have had their mortgage term end and have been moved to their lender’s standard variable rate (SVR) should definitely shop for a remortgage. The deals available could have interest rates far better for a homeowner than their SVR. It could save hundreds, if not thousands of pounds, per year just by remortgaging and leaving the SVR behind.

All homeowners are encouraged to shop for a remortgage. There could be savings available, a fixed rate to offer relief from rising rates during their new term, and some could find opportunity by cashing out their built up equity as well as obtaining a better interest rate.

It’s simple and easy to remortgage shop online. Brokers offer quotes from various lenders and often have exclusive deals. One can always shop through many lender sites as well for quotes. With quotes of possible offers on hand, it is much easier to realize the opportunity a remortgage could bring. 

It’s time to plan due to the changes occurring in the housing market and especially due to forecasts for cooling of the market and higher interest rates ahead. Whether it is a home buyer choosing to decide to buy now with a lower interest rate choice, or waiting to save from lower asking prices later on, or a homeowner making choices about remortgaging, there are benefits to be had by preparing now.

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