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Latest NewsWednesday 10th May 2017
HOME CHEAP HOME?
It’s official – there has never been a better time to buy a house.
Britain’s lowest ever mortgage rate was launched last month at a staggeringly low 0.89% by one building society, beating the previous record of 0.98%.
However there’s no such thing as a free lunch and with these record deals, there are inevitably some snags. As well as a restriction on borrowing of up to 65% on the property value and a hefty arrangement fee, these new bargain rates are likely to be pegged to building societies’ standard variable rate (SVR) offering this tantalising discount for maybe a couple of years. Then it’s back to reality as the lender can alter the rate at their own discretion. So these deals won’t be suitable for homebuyers looking for the certainty of fixed monthly payments.
These rock bottom rates are inevitably attracting first time buyers and remortgage customers and they’ve confounded some economists who predicted the end was nigh for record low mortgages.
Overall, the average two year fixed rate mortgage is now 42% cheaper than it was three years ago according to Bank data.
‘We are certainly seeing a bigger influx of first time buyers but these cheap deals won’t suit everyone, warns Neil Starr of Rundlewalker’s Property Team.
‘If you’re a first-time buyer, there is a lot to get your head around in terms of the real cost of what you are doing. This is why here at Rundlewalker, we offer fixed fees on home purchases to give new home owners some peace of mind, not just in terms of the professional work undertaken to complete their purchase but also the price.
‘Although we are not permitted to advise clients on mortgage deals, we do urge them always to do their homework thoroughly on their borrowing arrangements.’
Buying your first house is a very important milestone and one of the biggest and most expensive decisions most people ever make. Yet according to one recent survey, the average decision is made in a swift 38 minutes. Another survey reports that buyers often spend less time deciding on a house than on a Sky TV package.
Sensibly, many buyers spend time searching online first so cut down on the hours traipsing the streets and grilling estate agents. Local valuations, property history, photos, transport and school information is readily available to digest, before people bother to book a viewing.
Surveys also indicate that nearly two thirds of buyers view a property twice before making an offer. Yet one in ten of us decides to buy after just one visit. Most potential buyers say they know within the first sixty seconds whether it’s THE ONE. They only return for a second viewing for reassurance on their initial thinking.
Says Neil, ‘Every stage of buying a home needs careful thought. We advise our clients to take their time when they make these major decisions. Our aim is to provide a great service at a fixed fee that takes at least some of the stress out of the process.’
If you are considering a sale or purchase and need advice with your residential conveyancing, please call or email us for advice or for an estimate of charges: Rundlewalker Solicitors on 0800 015 2568. The following specialists are available to advise you:
Sam Reid, Solicitor: 01392 209205. firstname.lastname@example.org
Louise Webber, Paralegal: 01392 209204. email@example.com
Joe Clark-Farley, Paralegal: 01392 209202. firstname.lastname@example.org