Mortgage rates rising and house prices falling might create a perfect storm for the UK housing market

Mortgage rates rising and house prices falling might create a perfect storm for the UK housing market

After the UK’S new economic strategy was revealed in Chancellor Rishi Sunak’s £45bn tax-cutting Budget, it led to many ripples in the housing market. The mortgage interest rates are rising and house prices are falling which has resulted in the perfect storm. Now the mortgage deals for people are around 5%-6% and the prices of many properties may drop to 20% per cent. So this has turned into a buyer’s market.

As a home buyer or an investor, you may have concerns about the current scenario in the property market. If you need any guidance you can get help from the Popular Brighton Estate Agents who are ready to help you. They will offer you all the assistance you need to understand the property market and will offer advice on how best to deal with the challenges.

But how can you benefit from this current situation at hand and if there are problems how can you overcome them?

How can rising interests and low home prices affect homebuyers? 

The rise in interest rates can make you fearful of buying a property. But don’t worry, there is no need to panic because if you understand the situation you can handle it and make use of this opportunity to your advantage. If you are anxious about the increasing mortgage rates, you can consider changing to a better lender and switching to a lower rate. With your estate agent’s help, you can find a mortgage advisor to guide you to choose a great mortgage lender.

Further, when the mortgage interest rates increase, home prices may fall as the demand for them will decrease. When this happens the sellers will sell their properties for a more reduced cost. There are other benefits too. Have a look at it.

  • Rising mortgages provide new opportunities for property buyers and investors 

Many homeowners are trying to sell their properties because of the decreased cash flow as a result of higher interest rates. This opens up a lot of room for buyers and investors to purchase new properties and become an integral part of the housing market. For instance, investors looking to build their portfolio of properties can find excellent properties that can offer them profit in the future.

So as a home buyer or an investor if you approach this situation in the right way, you can buy properties from the homeowners and make it financially viable for you.

But you have to choose the best type of mortgage to make it easy for you. That is why get help from estate agents who will help advise you on the best type of mortgage.

  • Major lenders provide Government Guaranteed 95% Mortgage

Now the major lenders will continue to offer mortgages to prospective buyers who are only able to make smaller deposits. They can benefit from the Government guaranteed 95% mortgage scheme. So current homeowners can apply to buy new properties and first-time buyers will be able to buy a home for the first time in their lives.

  • New homes built to meet the increasing demands 

When there is a demand in the market for houses from buyers then steps will be taken to build new homes to meet the demand. Most importantly more new homes will be built in the fine areas outside the city. This is because people are starting to see the advantage of living in such wonderful and ideal locations and that is why many buyers have planned to buy a property in these areas. So you too can find lots of property to view and make a decision to buy it or not.

  • More reasonably priced homes 

As the prices of homes are decreasing it can be the perfect time for you to buy or invest in a property. If you can save a good deposit to get a mortgage, you can plan to buy an amazing property. But if you have any questions regarding it and want to find excellent properties, you can get help from the estate agents in Brighton.

Is it the right time to buy or invest in a home?

House prices and mortgage rates are predicted to stabilise soon so you can get prepared now to buy or invest in a home. The prices of properties are decreasing because of the high demand for quality homes. Therefore set up an appointment with an estate agent to buy your dream home. In the future, you can expect the price of that property to appreciate and offer you greater yields.