Some potential first time buyers face a dilemma: amid uncertainties about the property market, should they delay a purchase whilst higher interest rates may add to savings?
If renting, it is important to remember that landlords may be looking to their tenants to pay their increased mortgage costs. This could mean that you are paying more in rent than you could actually pay for your own mortgage! Consequently, if your finances stack up, it could be better to commit to making that purchase.
Independent research by leading surveyors indicates that prices will streamline before increasing again after 2024 by which time it is expected that the UK’s finances will have recovered as the economy grows again.
So, do you choose an established or new property?
Developers are keen to attract buyers, with a range of offers, including low deposits and extra fittings, as well as emphasising their energy efficiency which is a priority at present. Part exchange could also be available for buyers wishing to upsize.
Securing the best opportunity means talking to specialist mortgage advisers, who can assess your current financial position based on day to day expenditure, and potential future affordability. This is not the time to overstretch budgets, keeping something in reserve for the unexpected is essential.
Don’t be embarrassed to talk to parents or grandparents. They may be able to help by releasing some equity on their own property to increase your deposit, and cover some of the initial costs. Specialists always recommend that families openly discuss the options, enabling all parties to enjoy benefits. For example, releasing equity may not just contribute to a young person’s mortgage deposit, but enable older people to pay for things which they thought they could never afford, such as a new car or special holiday.
Our skilled team at Premier Equity Release are happy to discuss the most appropriate way forward to suit individual plans. We have trained, empathetic, advisers who can assist with solutions, guiding debate with the wider family to meet financial commitments in everyone’s best interests. Contact us today on 0808 1691979 and let us help you.