Last week saw mortgage lenders remove a number of product offerings from the market amid fears amongst lenders of an increase to the base rate and incoming interest rate hikes. Those who are considering making a move, and require a mortgage to do so, are urged to act quickly to lock in a mortgage offer before further increases are made.
If you are looking to sell your property or move to the area, take some time to browse our Properties for sale in Wentworth Estate, Properties for sale in Virginia Water and the surrounding areas. If you have any questions, you can also visit our award-winning website or call us on 01344 843000 and email us.
If you are considering a move, why are you recommended to do so now?
If you are considering making a new home purchase, experts advise that you do so now. While you will feel that today you are paying a considerably higher amount back in repayments compared to three years ago, sitting on the fence and waiting could see you pay even more back on your borrowing next year, with mortgage rates forecast to hit a 6% high. The rate is expected to continue to increase for the remainder of this year and into 2023, so locking in a product now is advisable.
Are people still keen to move?
The reality is that buyers and sellers will continue to drive the market as each will have their own reasons to move house. It could be that they need more space, or alternatively, they want to downsize. People may be looking to move due to moving in together, needing space for blending families, or having to sell through separation. Others may be looking at ways they can save on energy so may look to move to a more energy efficient property. Jobs are still a huge factor in people moving to a different area, along with school catchment areas. All very valid reasons that make ‘staying put’ in a current property difficult. Houses will still appear on the market across all budgets, along with buyers.
Homes are still going onto the market at the moment at a very good price, with high demand of buyer vs supply, with many still competing for properties. If you are considering selling now is a good time to do so to maximise on the current prices, as experts are predicting that the price of homes are to drop next year. While the thought of a price drop may make some people wait before they buy, the increase in interest rates will make buying a property costlier in interest paid so it may be a gamble to wait and see.
What to do if you’ve agreed a house purchase without a mortgage confirmed
Firstly, if you’re in this position, don’t panic. It is advised to get your mortgage product agreed as soon as possible, or to at least apply for a new Agreement in Principle to help you to understand things such as; what price you need to sell your home at. While mortgage rates are going up, and if you find that the amount you need to pay back is more than you expected, you may just need to budget differently. For example; work towards increasing your income, or make savings in other areas to ensure you can secure your new property. If you have your home on the market and need to sell to buy, there are still buyers looking to move and your home is still very likely to sell.
While mortgage lenders don’t want to be caught out by a sudden base rate rise and have started to take a cautious approach to lending, they still have the money to do so, and still want and need to lend, so it is advised to go ahead with your mortgage application as soon as possible. Now is the best time to explore your options and lock in a more favourable rate before the future hikes and further changes to packages and lending criteria comes in.
What to do if you have a mortgage offer but no property secured
Keep looking for your next home, explore your options and if you’ve viewed all of your favourites, ensure to view properties that are on your ‘maybe’ list, one of them may just be your dream home after all. Talk to us about what you are looking for in your next home, we may be able to suggest homes to you that you hadn’t thought about looking at.
Mortgage offers that have been approved are usually valid for 6 months, with the capacity to move up or down in value by 10% of your requested borrowing. So, if you change your mind on a property, or somewhere in the chain has fallen through, you still have time to find your next home. There are no reports at present of lenders pulling approved offers so this shouldn’t put you off your home search.
If you’re not sure where to start with lenders, speak to a Mortgage Broker
Mortgage brokers and lenders as you can imagine are understandably in high demand at the moment for people re-mortgaging and trying to get new mortgages so things may take a little longer but it is still worth acting now in order to explore your options and lock in a more favourable rate before future hikes.
A decent Mortgage Broker will be able to find lenders and deals that are suitable for you. While some may charge a fee to do so, it will cost very little. If they can find you a great deal now for you to lock into it can save you money over the length of your mortgage term.
GET IN TOUCH
If you are thinking of moving to the area or buying a property to rent, make sure you take a look at our amazing portfolio of Properties for sale in Virginia Water and the surrounding areas. If you’d like to speak to someone about Properties to let in Virginia Water, a member of our expert team would be happy to help. You can call us on 01344 843000 or email us. You can also follow us on Facebook, Twitter, Instagram, and LinkedIn.
