The state of the housing market and the movement of interest rates in the UK has been causing confusion amongst potential property purchasers, as many are not sure whether to take the plunge and purchase a property now or whether to wait and see what happens with property prices and interest rates before making a purchase. Most industry professionals are predicting that by the end of the year house prices and interest rates could have fallen significantly, and many would-be buyers are wondering whether they should hold out.
One industry expert recently stated: ‘Given the current climate of stagnant house prices and rising mortgage costs, it is more important than ever to take a long-term view of any purchase. The days of quick capital gains are gone.’
He also said: ‘The days of buyers scrambling to get on to the housing ladder at any cost are well and truly over. Buyers should think hard about why they want to purchase. That is not to say they shouldn’t buy, but they should ask themselves whether it is the right place they are purchasing and whether they are paying the right price.’
Buyers are also urged to think about the type of mortgage that would best suit them – and would be available to them – before rushing into anything, as this could have a significant impact on affordability. One industry professional said that those concerned over whether they would be able to maintain affordability once they had purchased a property may wish to consider a fixed rate deal, as this means that their repayments and interest rate will remain static for a fixed period of time, increasing stability and security.
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March 31, 2008 @ 11:04 am[…] Advice for confused property purchasers […]