In uncertain times everyone needs a little certainty and control. With bank rates fluctuating and opinions about what will happen to the property market in 2, 6 or 12 months. The Brexit will certainly have an effect on markets but as yet no one knows exactly what that will be. Markets crashing, property prices plummeting and base rates increasing have all been speculated upon. Alternatively, we may see prices continue to rise, base rates at 0% and an increase in the availability of new build properties.
One thing you can control through periods of uncertainty are your finances. Whether it is clearing or transferring your credit card, tightening your belt on your purchases or re-mortgaging for a better fixed rate deal – these are all actions that will give you peace of mind and leave you better prepared for dealing with any market fluctuations.
As no one knows how our current climate will affect our day to day lives, we really must continue to live as normal. The buying and selling of property is part of that norm and as such people really can still get some very good deals when it comes to mortgages.
If you currently own a property it is always wise to shop around for new deals as your existing deal is due to expire. This is especially pertinent if you have a tracker mortgage that follows the Bank of England’s base rate. You could possibly be paying more than you need to and searching for a new deal could save you hundreds or thousands of pounds per year. Certainly having the certainty of knowing your monthly payment will create peace of mind.
If you are buying a property, then shopping around for deal to suit your monthly budget is important. Whether you are a first time buyer or a second stepper budget control is important in a time where other costs are increasing including paying solicitors and removal fees. How ever the mortgage deal appeals to you, look at what affect it will have in 6, 9 or 12 months and take advice from an expert. Knowing you have secured a fixed rate deal for 2, 5 or 10 years will offer level of security to your cash flow throughout these uncertain times.
One thing you should always be asking yourself when it comes to purchasing a property is whether you are buying a property to become a family home or whether this is a purchase with a view to invest and see a return. If you’re looking to make that purchase with the view of it becoming a family home then the strength or weaknesses of the market wouldn’t necessarily impact you, if you have certainties in affordability, you enjoy the property and it’s location then take the opportunity while you have it. This will always then give you a degree of stability in your family life and it’s future. These situations were seen during the recession from 2007 – 2014 where families/couples waited for a better financial climate and found that by the end of it that the housing market had then priced them out of a purchase opportunity. If you are looking to invest, it is more of a complicated decision where your time frame for investment needs to be taken into account. The longer you’re looking to hold an asset the more opportunity you have to “ride out” uncertain times.
The advantage of taking a 5 or 10 year fixed term mortgage is that it will provide you with a level of certainty that will stretch beyond any Brexit related decisions.
Contact us on 01733 592020 if you would like information on any buy to let, first time buyer or re-mortgage deals as we work with a qualified mortgage advisor that helps our clients make sure they have a mortgage deal to suit them.