Amidst the gloomy economic headlines, there are glimmers of light on the mortgage market horizon. Halifax have recently released their latest House Price Index which remarkably showed that house prices rose 1.9% in January – the first increase since February 2008.
Whilst this undoubtedly does not signal a definitive end to the credit crunch, it does give an indication that the market may slowly be beginning to stabilise. Only the next few months will tell, but if you are a homeowner concerned with falling equity you could find that this starts to gradually climb back up, with prices having already decreased by an approximate 17.2% over the past twelve months. (Source: www.hbosplc.com).
Further signs that confidence could be returning to the market have been indicated from estate agents who are reporting an increase in interest from would-be buyers. Property website Globrix reported that site traffic had almost doubled last month and that searches were up 71% with most growth at the bottom end of the price scale (Source: www.globrix.com). Buying has certainly got a whole lot cheaper and if you have a reasonably sized deposit combined with the current historically low interest rates now is the time to benefit from a buyers market.
We are finding benefit in decreasing interest rates, with mortgage interest payments now typically consuming less income than before. If you are coming to the end of your mortgage term, it could be the time to switch to a fixed rate, with deals available from sub 4%. There are certainly competitive mortgage products available, particularly if you are remortgaging at a lower loan to value.
Seeking advice from a mortgage adviser can ensure you have access to the widest range of options available particularly as there were just 3,707 mortgage products available January of this year in comparison to 39,916 January 2008 (Source www.mortgagestrategy.co.uk). The Mortgage Store provide expert mortgage advice, and will discuss your requirements in detail recommending the best deal whatever your circumstances.
And while one cannot confidently predict what will happen next in the housing market, what we can be certain of is that house prices have become more affordable and that the unsustainable growth in recent years is adjusting.
Your home may be repossessed if you do not keep up repayments on your mortgage.
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For further details or to arrange an interview please contact:
Mark Deane
01908 867577 / 07774958001
