Interest Rates have gone up by 0.25%? Is it Doom and Gloom?
So the big news is interest rates have gone up by 0.25%.
What does this mean for the property market, is it the end?
Will people stop buying?
Are we in for a housing crash?
You would believe this with all the stories are out there creating doom and gloom on the market. I would like to point out 3 really important facts to you to think over and you decide if it’s all doom and gloom?
Fact 1 – Interest rates have increased by 0.25%, if you don’t have a fixed rate mortgage then yes you will end up paying a little more but nothing like what we were paying in 2008.
Fact 2 – If we look at the history of interest rates, then the rate has only gone back up to what is was at the time of Brexit vote in 2016 at 0.50% which is one of the lowest interest rates that we have ever had.
Fact 3 – Will we all still be buying houses and moving?
Yes there is a high demand for quality properties from first time buyers and family. In fact property prices in most areas are increasing by 2 -5% per year depending on the area due to the lack of properties available.
Can you remember the housing market boom, just before the Financial Crash in 2008, we were more than happy to pay, would you believe now between 5.5-6% interest rates and thought it was a great time to buy property. Why in a market that has some of the lowest interest rates around would it not be sensible to buy your own home. When you see increasing rents in the rental market which can be more than a mortgage on that property and most banks offering 95% LTV mortgages or new build properties with the help to buy scheme offering up to 20% interest free loan for 5 years from the government.
If you are a first time buyer and would like help understanding the process of purchasing your first property. Please check out our video on the right way to buy your first property or better still give us a call on 0113 2785555 and speak to one of our property experts.
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