With interest rates remaining at an all time low of 0.5% and with this unlikely to change until 2016, when it is predicted that unemployment rates will fall below 7%, securing a mortgage and buying a property, really is a tempting proposition. However affordability is the biggest factor for buyers to consider, with this investment cost often being prohibitive to so many trying to get a step on the ladder.
Ability to Buy
The recent Government initiatives such as “Help to Buy” are however, playing a part in relieving this issue. First time buyers who have been previously restricted due to financial limitations and forced down the house rental route are now far more able to become house owners themselves. Not only does this allow them to acquire a lifelong asset to build a home but it will also free them of the excess they would have found themselves paying to Landlords.
Buying v Renting
Back in 2008, renting was far more an economical option for many. However, the house rental market has been more than buoyant in recent years due to both the inaccessibility of a mortgage for those wanting to buy and also because of the lack of housing stock to satisfy demand. Both of these factors have had a significant impact on monthly rental fees, and we have seen a steady rise in these over recent years. Today, it would be fair to say that monthly rental fees are in the region of 10% more than the monthly mortgage, resulting in an annual additional spend of approximately £875 – a considerable and significant sum for most.
So the market is therefore experiencing some major influences, which at this stage indicates that buying is now not only possible but a far more favourable option too. If this is something that you are considering and you need Mortgage assistance then we at Total Mortgage Networks would be happy to advise, so please get in touch.