from Robin Kellock, local independent mortgage adviser
Thankfully, since my last market commentary, the mortgage world has calmed down, after a much more turbulent few weeks, than even I could have forecast!
Obviously, in response to Liz Truss’s now infamous, ‘mini budget’, the money markets were spooked, and, in my opinion, the lenders showed a knee jerk reaction by withdrawing mortgages yet again, and raising lending rates much higher than the gradual base rate increases from the Bank of England. This, understandably, caused an immediate slow down of the market, with many would-be buyers and movers waiting until some sort of normality was restored.
I am now pleased to report that, despite a lot of very challenging weeks and months ahead for many households due to the cost of living crisis, the mortgage market is stable with many lenders now lowering their longer-term fixed rates to try and attract new business. It seems we are where we are with lending rates looking to settle at around 4-5%, for the foreseeable future. I personally feel that the rates over the last few years around 1-2% have been artificially low and given us all a false sense of security which has helped fuel a rampant housing market.
Confidence in the housing market has certainly been knocked but, once again, it must be stressed that house ownership is a long-term investment so, if you are able to enter the market, or can afford to move to a larger house, then don’t delay. Hopefully, the availability of property will increase as we enter the traditionally most popular spring market which will help the supply and demand factors get us back to a more ‘normal’ market which, I feel, will be good for us all.
On a general note, long term good quality rental property is urgently needed in the Ryedale area to satisfy local demand from so many who are unable to buy due to a lack of deposit or previous credit problems.
Give me a call on 07866 254277 for advice and to look at your options.