The perfect time to buy?

With house prices seeming to be on the rise again, Estate Agents seeing demand soar, base rates at historically low levels and homes now at their most affordable since 2004 could now be the perfect time to move up the ladder?

The National Association of Estate Agents (NAEA) has released figures that show residential sales in the UK are at their highest in 18 months, with the average agency achieving ten sales in April compared with just five per agency in August 2008.

This comes at the same time as a report by Rightmove showing that asking prices for homes in both England and Wales increased by 2.4% last month. These figures suggest that both demand from buyers and sellers expectations are rising and the once stagnated property market may begin to move again.

One of the biggest contributors towards this renewed confidence in the market comes with the low interest rates that we are currently experiencing. The fact that the base rate has remained frozen at 0.5% for the third month in a row means that houses are seen to be much more affordable for first time buyers and existing homeowners.

In fact, according to a report by the Council of Mortgage Lenders (CML) we are currently experiencing the lowest debt servicing costs since 2004, despite needing large deposits and lending being stagnant. The report showed that first time buyers accounted for 40% of all mortgage lending in March which is the highest proportion this group has held since 2005.

So, is now the right time to step on or move up the ladder?

For Contractors with a deposit, now could be the perfect time to act in order to catch the market before house prices begin to rise. Making the most of the opportunity that the low base rate offers suggests opting for a fixed rate mortgage to be the wisest option.

Unfortunately if you aren't lucky enough to be a first time buyer with a large deposit or an existing homeowner with equity in your property, then little has changed this month.

Lending is still very tight and as such, understanding the options available is crucial to ensure that you put your Contract income to best use and find the right mortgage to suit your needs. At ContractorFinancials we specialise in offering Contractors a mortgage that is based on Contract rate alone, with a lender that understands your unique working arrangement and provides a mortgage to fit your lifestyle.

If you don't have a deposit saved up then we can also advise you on the investment opportunities available to help take your savings potential from a garden shed to a dr

Return to Articles page