As we head into the summer, the housing market has remained quiet – not completely surprising given the political economy. But if we are to look for the positives in this then house buyers including first time buyers could get themselves a property bargain!
With more millennials contemplating the transition from tenant to home-owner, now could be the prime time to buy a property and get your foot on the ladder. With the regional stamp duty exemptions and the re-introduction to more competitive lender fee incentives we have started to see recently lenders reducing interest rates which is a welcome surprise. We will run through a full affordability and budget analysis and will always ascertain a realistic monthly figure that you can comfortably afford for the mortgage and this is still a paramount part of our advice. With rates competitive, a rise of 1-2% could make a drastic change to your monthly repayment and its important to take this into consideration.
Mortgages requiring smaller deposits are on the rise and mixed with the combination of attractive interest rates and the assistance of bank of mum and dad – this period we are entering is strong for buyers looking to make their first or subsequent purchase. More lenders are becoming increasingly flexible surrounding deposits, subject to affordability the deposit can be in the form of a personal loan rather than the traditional savings or family gift and this is a welcome move for house movers too especially if there isn’t enough equity coming out of the sale but the household income is enough to cover the deposit as well as the mortgage.
Does Gazumping still happen?
In short – yes it does and with sellers perhaps not getting their ideal price if a higher counter-offer is made, it’s sad to say the original bidders are gazumped. The lack of properties coming onto the market is a factor but that still doesn’t make it right!. Too add insult to injury there has been a rise of “gazundering”. A term used where buyers are asking for a significant discount at a point so far along in the transaction for no specific reason other than to try and reduce the original price offered. The seller feels obligated to comply in order for the chain to not collapse therefore losing a lump sum and possibly repeating the process along the rest of the chain to try and gain some loss back.
It certainly is a funny part of the year but houses are still being bought and renovations being carried on family homes – whatever your plans are please contact us to have a chat with a Financial Adviser on 0333 772 0672 or email us with your enquiry: firstname.lastname@example.org.
All initial consultations are at no cost with no obligation and we are always happy to help.