UK Housing Market Trends: Graph showing average house prices over the past 20 years.
“Those who can afford to secure a mortgage may find they have some bargaining power on their side while the market remains subdued,” said Springall.
However, she added that “lenders also have an important role to play in supporting affordability, with products such as Nationwide’s Helping Hand mortgage giving eligible first-time buyers more borrowing power based on their income”.
Are mortgage rates set to rise?
While Gardner said underlying affordability is improving (as earnings growth outpaces house price growth), he recognised that “some of these gains have been offset by higher mortgage rates”.
Unfortunately, mortgage rates could soon be set to climb even higher as swap rates have risen to 30-day highs following an escalation in conflict between the US and Iran. The renewed tensions are once again threatening the route of global oil supplies through the Strait of Hormuz which could lead to more expensive energy bills and stoke inflation.
“This does not bode well for borrowers, as lenders use swap rates as a key influence to reprice their fixed rate mortgages,” Springall explained. “Those borrowers who were hoping for cheaper mortgage rates will be frustrated if lenders start hiking rates over the coming weeks, so it is essential borrowers seek advice and secure a new deal quickly,” she continued.
Reassuringly, some mortgage brokers, such as our preferred broker Mortgage Advice Bureau, regularly monitor the market and will look to move their clients onto better deals if one becomes available before completion.
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Your home may be repossessed if you do not keep up repayments on your mortgage.
