Exploring Mortgage Trends, Challenges, and Opportunities for Homebuyers
The UK's mortgage market is in a constant state of flux, influenced by a myriad of factors including economic conditions, government policies, and global events. As of August 2023, prospective homebuyers and homeowners find themselves amidst a unique set of circumstances that are shaping the landscape of the UK mortgage market.
To further educate our employees, deverellsmith welcomed Moazzam Kamruddin (Associate Director/Mortgage Advisor at Alexander Hall) to educate our staff on trends, challenges and opportunities for home buyers.
We thought we’d share his insight with our network, hopefully providing valuable tips on how to approach home ownership.
What should you do in the current climate if you are a first-time buyer and looking to purchase?
Determine if its right for you! Everyone’s circumstance is different. For example, if you are renting, it would be important to see what the monthly payments for a mortgage would be in comparison to your rent. Often it can work out the same if not cheaper. It is important to seek advice, as there are a variety of ways to structure a mortgage to make it fit your financial needs.
What should you do in the current climate if you are looking to remortgage?
You ideally want to start looking into your remortgage options 6/7 months in advance of your current product end date. Lenders will allow you to secure a product 6 months in advance whilst still being able to monitor the market to see if rates change.
Brokers at Alexander Hall will secure you with a product but also go through different ways we can re-structure the mortgage in order to reduce the monthly payments should we need to. If the rates change and increase, you are not affected as you would have secured a product in advance. If the rates reduce, we will always be able to put you on the cheaper rate.
Can you provide any market predictions for the next 12 months?
It’s difficult to predict, but the sentiment is that rates should come down within the next 24 months. It seems that the government and Bank of England are starting to have a grip on inflation. As this stabilises the lenders will be more inclined to decrease their rates.
Any last piece of advice?
It is still a good time to buy if you are in the market. Remember, if you are thinking of putting things on hold so are others. This can create a lot more opportunity in the market to get a good deal on a property. If rates reduce in 2 years, those remortgaging will be able to take advantage of cheaper rates. For those buying, there will be more competition in the market. As we know, more demand can lead to property prices potentially increasing, so it may be worthwhile getting in now!
While challenges such as supply-demand imbalances and high interest rates opportunities like refinancing and diversifying property locations provide avenues for potential homeowners and current homeowners alike. Staying informed about the market's dynamics and seeking professional advice will be crucial for anyone navigating this evolving landscape.
You can stay connected with Moazzam Kamruddin through Linkedin, or email and telephone, using the details below.
E: moazzam.kamruddin@alexanderhall.co.uk
T: 07875 800607
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