by Robin Kellock, local independent mortgage adviser
As we enter winter, I can certainly report that the mortgage world has changed quite dramatically in a very short period of time.
It has been well documented, that in order to try and control rampant inflation, interest rates have had to go up, and may continue to do so. This is obviously affecting all new borrowers, and anyone coming out of a fixed rate, and looking to fix again. Homeowners currently on a fixed rate will remain unaffected until they need to fix the rate again in the next few years.
The rise in rates has been the most dramatic of recent times with lenders rates which were around 1% less than a year ago, now mainly over 4%. This, coupled with rising energy and living costs, really does look like it will calm the property market within the next few months. However, at the minute, the demand for houses still remains high with the market hanging on remaining very strong and with sales at all price levels.
I would certainly say that property should always be considered as a long term investment so, if a house becomes available in the right area at an affordable level, then there is no reason to consider putting off buying your first home or moving up the property ladder. I would certainly recommend fixing your mortgage rate for as long as possible to make sure you are protected from volatility over the next couple of years until the world economy settles down, and inflation drops.
We are very lucky to be in area where I feel that there will always be people wanting to retire and enjoy the delights of North Yorkshire every day, rather than just on holiday, people wanting to live up north and commute to London for work, and obviously local people wanting to buy their first house in the area that they have grown up in. This will keep the market strong, but perhaps we maybe do need just a slight levelling up of the housing market to make sure that all those that are able to, stand the best chance of owning a house one day.
Call Robin Kellock at Mortgage Advice Bureau to arrange a FREE financial review to look at your options on 07866 254277