The UK property market has been in a state of crisis for years, but with the reality of Brexit uncertainty in the market has only increased.
The general trend of thinking is that when home prices fall, it’s prime time for first time home buyers to be window shopping for their dream home. However, it’s more of a double edged sword as home owners are also less likely to sell. Recent reports from financial and city authorities mention that property sales are falling as home owners pull out or place sales on hold.
Over the last few years property prices in the UK have steadily increased, fuelling reports of a London ‘price bubble’. To afford a starter home or bachelor flat, first time home buyers reportedly need to earn an estimated £77,000 a year, drastically higher than the national average of approximately £26,000.
The good news is that mortgage rates are the lowest they’ve been in 30 years. So, if you’re saving towards purchasing your first home, don’t let these recent economic issues put you off. Take greater control of your financial situation by planning a bit better, seeking more counsel and shopping around for the best mortgage for you.
Here’s a few key things you can do now to make purchasing your first home easier:
- Regularly check theselling price of properties, in the area in which you want to purchase
- Calculate planned total housing costs(i.e stamp duty, conveyancing, buildings insurance etc.)
- Be-friend estate agentsand talk to them about the property climate in the area you’re looking to buy
- Check your credit score(do you qualify for a mortgage?)
- Prepare your paperworkand get all your documents in order
- Get to learn more about your mortgage options
- Find a mortgage broker online for pre-approval
Shockingly, 2 million Britons are on the wrong mortgage and a third have no idea what their interest rate is. As the uncertainty in the housing market continues for the foreseeable future, look beyond your bank and find mortgage brokers with the widest breadth of lenders to ensure you’re getting the best possible deal. Digital mortgage brokers, like habito, scour up to 100 different lenders rather than just a restricted panel. All online and available 24/7, digital mortgage brokers don’t require an appointment to gather your information and the initial application can take as little as a few minutes.