Buyer hesitancy has been a common theme over the last few years, with affordability of housing, Brexit and a lack of confidence in the market frequently coming up as reasons for renters to stay put. It’s understandable that plenty of potential buyers are feeling a sense of unease when it comes to taking the plunge on a house, but the reality is that more and more people are putting their worries aside and searching for that perfect home, even within the current climate.
December saw a rise in mortgage approvals, for instance, and we now have more good news to share due to the fact that affordability is improving at its fastest rate since 2011, meaning that purchasing a home is more affordable than it was ten years ago.
According to mortgage broker Private Finance, the average borrower is saving £104 per month on what they would be paying in 2008, with average monthly payments falling from £804 to £700.
Whilst house prices have risen at a much quicker rate than wage growth inflation over the last 20 years, the broker is insisting that once the initial payment is made on house, monthly repayments are broadly in line with the same levels seen 20 years ago.
“News of the UK property market’s affordability crisis is never far from the headlines,” offered Shaun Church, director at Private Finance. “What we often fail to acknowledge, however, is that thanks to falling rates, those with a mortgage today are in a similar – if not better – position than their predecessors, who owned property at a time when housing was considered vastly less expensive” explains Shaun Church, director at Private Finance.
“Homeownership can be attainable. Those in a position to buy should shop around for the best rates on the market, to ensure they capitalise on the incredibly competitive rates currently on offer. Borrowers should also consider locking into these with a longer fixed term, to cushion themselves against any further rate rises and keep the monthly cost of ownership low for as long as possible.”
