Is it time to make your move?

As the housing market traditionally begins to slow whilst we enjoy the hot summer days, it can be an uncertain time for buyers with the latest news talking about interest rate rises in the future.

Official figures from the Bank of England have revealed something of a lending sump with May experiencing an 11-month low. Banks and building societies approved 61,707 home loans which is 19 per cent below January’s peak of nearly 76,000. But should buyers be worried? No, but it might be time to act.

Mortgage rates have been at record low levels for the last few years thanks to the drop in base rate and the Funding for Lending Scheme so there’s never been a better time for home buyers to take advantage, as these favourable times can’t and won’t last forever. The run of low rates is slowly heading towards the finish line.

Buyers with a decent 20% deposit should make sure they shop around for the best fixed deals, as lenders are already increasing their rates and last month the Bank of England hinted that rates could rise sooner than expected.

I think we are approaching a challenging time for the housing market for both buyers and sellers. A package of proposals has been released by the Banks Financial Policy Committee including the so called ‘stress test’ where lenders are checking mortgage applicants can afford repayments if interest rates rise 3% on top of their current deal.

It could be time to set aside any free hot summer days to search for your perfect property and enjoy your first Christmas in your new home before low mortgage rates disappear and lenders put the brakes on borrowing.

To find out more about Oakford Homes call 01628 522084.