Buyer Demand Remains Strong
Buyer demand in the property market has held steady for April with only a slight downturn on sales agreed even with increased fixed mortgage rates. Mortgage rates have now stabilised, but they remain elevated. The increases that have already occurred due to the global uncertainty will have a big impact on monthly affordability for some new buyers.
Mortgage Rates Have Stabilised….For Now
Mortgage rates have now stabilised, but they remain elevated. The increases that have already occurred due to the global uncertainty will have a big impact on monthly affordability for some new buyers.
The average 2-year fixed mortgage rate rose to 5.42%, up from 4.25% before the start of the war in Iran. On a £250,000 mortgage with a 25-year term, this would add £143 a month to the monthly payment for the product period.
It’s now predicted that the Bank of England will start increasing the base rate later in the year, which will have more impact on rate pricing, particularly tracker and discounted rates which have been less affected so far.
Jamie’s View – What Does This Mean For Buyers?
Does this mean you should pause your house-hunting plans? You have to consider everything for your personal situation. But waiting for “tomorrow” may become waiting for forever, especially when external factors outside of any ordinary individual’s control can have such great impact on the core decisions of our lives.
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