The property and mortgage lending market may be a challenging one right now – Kwasi Kwarteng’s disastrous mini-budget in September saw mortgage rates rocketing at a time when the cost of living crisis was starting to bite – a combination that has lead British banks and building societies expecting to lend 23% less to homebuyers during 2023 with house prices predicted to fall.
However, opportunities do still exist for those looking to buy a new home now that mortgage rates are starting to drop, with lenders trying to stimulate the property market, for example: NatWest have just launched a five year fixed rate at 4.38% – which is only around 0.40% higher than before the ill-fated mini budget.
According to recent reports, the real estate firm Jones Lang LaSalle is forecasting a 6% drop in house prices for 2023 arguing that house price crashes have been rare in the UK. Both it and Savills expect a recovery to 1% price growth in 2024, as interest rates fall back and inflation is contained. Robert Gardner, chief economist at Nationwide, expects a “modest decline” in house prices during this year, adding “There’s good reason to believe that we can still achieve a soft landing.”
Here at The Financial Planning Group, the estate agents we deal with every day tell us that many sellers are accepting offers below asking price currently, therefore, if you can buy a property for 5% less than September 2022, whilst mortgage rates continue to level out as predicted, a buying opportunity is emerging for some.
If you or a friend or family member has a mortgage or remortgage situation on the horizon, and would like to talk though your options, please contact Steve Padgham via e-mail at Steve.Padgham@fpgonline.co.uk or by calling 020 8614 4782.
Click Here To Call Us Now