112014Nov

Homeownership is Getting Cheaper

People seeking to buy a home can be reassured that the cost of owning a property is now at the lowest for several years. With house price growth slowing and lenders keen to do more business, this could be an excellent time to take out a mortgage.

According to the estate agent Hamptons, the cost of owning a home (excluding London) is now lower than before the credit crunch six years ago. Their comment takes into consideration both the squeeze on living standards and the increase in house prices over the past two years.

The main reason for the cheaper housing cost is the drastic reduction in mortgage rates since 2008. For example, in that year a two year fixed rate mortgage could cost 6.6% representing an eight year high. Today it is possible to secure an equivalent mortgage at a rate of only 1.5%. Furthermore, a latest prediction from a Bank of England spokesman suggests that interest rates are unlikely to rise before the general election next year.

In these circumstances, those seeking to move out of expensive rented accommodation or to re-mortgage for any other reason should seriously consider applying for a mortgage sooner rather than later, provided of course they can meet the tough affordability criteria of the providers.

With conditions in the housing market gently easing as reported by the Council of Mortgage Lenders, the demand/supply balance is shifting in favour of buyers. Hence better deals should be available in house price negotiations, and in the deals from mortgage lenders.

A mortgage broker firm like Bower Mortgages have access to the latest mortgage offers as they become available and provide a free initial consultation after which the most appropriate mortgage for you can be selected. Bower act on a whole of market basis and give totally impartial mortgage advice.