Waiting to buy your first home, but worried about the economic uncertainty following the pandemic? I totally understand – the last 18 months have a been a roller coaster for everyone.
There’s no crystal ball – we don’t know what’s going to happen to the UK economy and the property market. But there are some things we do know. In my opinion, this could be the perfect time to buy your first home – here’s why:
Competitive mortgage products mean better deals
We’ve seen more and more lenders coming back to the market with mortgages available with just a 5% deposit. The UK government is also now backing the 95% mortgage guarantee scheme. This increased competition, combined with the current low interest rates, means that buying your first home might be more affordable for you than ever before.
Low interest rates
Interest rates are low. Really low. The Bank of England base rate is currently just 0.1% – the lowest interest rate the UK has ever seen.
The bank cut the rate in March last year to help manage the economic shock of the pandemic, however their Monetary Policy Committee reviews the base rate every six weeks. While they voted unanimously to hold the rate 0.1% at the start of August, we now await the next review on 23rd September.
Time-saving virtual tours
House hunting can be very time-consuming, especially if you’re not sure which area you want to be in, or if lots of different properties catch your eye. There can be lots of phone calls and emails backward and forward to book viewings, and then there’s all the travelling round to finally view each property too.
Well, thanks to the pandemic, many properties now have wonderful 3D plans and virtual tours that you can view from the comfort of your own sofa – allowing you to understand the inside of a property much better than before, without all the faff of bookings and travel. This, coupled with a quick search on Google Maps (who doesn’t like a ‘street view’?), will quickly tell you if a property is even worth a visit.
Mortgage advice is more accessible than ever
Access to advice has become easier and (in some instances) quicker. Just as estate agents have created online viewing services, many mortgage advice firms and even banks have introduced an online video chat model.
This offers a huge time saving, as there’s no need to travel to have a face-to-face meeting. It’s now far easier to fit in appointments alongside work and your other commitments.
The pandemic has encouraged so many businesses online that competition has increased, encouraging an increase in product standards – think of all the online services, virtual tours, 3-D floor plans, property finders, and so on. All this competition promotes new and better ways of doing business, offering a vastly improved experience for the consumer, and all at a better price.
Get in touch for a chat
Want to buy your first home, but not sure where to start? Please get in touch with us – our friendly expert team are always happy to help.
Ross Stisi – the Bearded Broker
You may have to pay an early repayment charge to your existing lender if you remortgage.
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.