The number of property transaction fell slightly in April compared with March. Suggesting that the runaway housing market is finally starting to slow. There were 106,780 residential property transactions last month, according to HM Revenue & Customs, down 3.9 per cent from March. There were also some 12.1 per cent fewer transactions than April last year when buyers were keen to take advantage of the stamp duty holiday.
Meanwhile, Rightmove reported earlier this week that asking prices continue to rise due to a lack of supply. With prices up some £55,000 on average since the start of the Covid pandemic. Even in the face of four interest rate increases and the rising cost of living, demand continues to outstrip supply. With prices likely to continue on their upwards trend until more balance is restored.
Mortgage Rates
At the same time, lenders continue to reprice mortgage rates with little or no notice. The ‘big six’ in particular are keen to avoid finding themselves at the top of the ‘best buy’ tables, and potentially inundated with business as borrowers lock into fixed-rate mortgages to avoid further interest rate rises. Five-year fixes continue to prove popular, particularly as there is they are often cheaper than their two-year equivalents.
There have been more borrowers enquiring about ten-year fixes, mainly because they are priced so competitively. However, when it comes down to it, most people tend not to fix for that long in case their circumstances change and they need to get out of the mortgage early.
How AWS Private Finance can help
Rising prices and a lack of property for sale means serious buyers need to move quickly. If they wish to secure a home. Speaking to a whole-of-market broker such as AWS Private Finance before you make an offer on a property is crucial. With so much demand for property, agents will want to see evidence that you are serious and have funds in place ready to move when you find the right property. Our team of experienced brokers can ascertain how much you can afford to borrow and ensure the mortgage application proceeds smoothly. If you are remortgaging, we can help find the right deal for your circumstances. Ideally before interest rates rise further still.
We have particular experience in helping day-rate contractors and professionals secure a mortgage, as we know which lenders to approach to get the most favorable terms. Get in touch for more information.
