As we head into Spring, our Mortgage & Protection Specialist, Alex, is here to provide her insights into the current state of the property market.
After a relatively subdued period in 2023, the housing market is displaying signs of recovery. Thursday 28th March stood out as a significant moment, witnessing a surge in new home listings, making it the busiest day for property listings in 2024 so far. With an impressive 45% increase in homes added to Rightmove on that day alone, it's evident that the market is buzzing with activity, hinting at a promising trend compared to previous weeks.
Asking prices have been steadily climbing, with a modest annual increase of 0.8%. Presently, the average asking price stands at £368,118, representing an 18% uptick compared to the same month in 2020. It's a testament to the resilience and dynamism of the property landscape.
Mortgage Interest Rates Update
Turning our attention to mortgage matters, prospective buyers and homeowners alike need to stay abreast of interest rate movements. Recent data underscores a trend of rate cuts, with more than 50 mortgage lenders slashing their residential rates in January alone. Although there has been a marginal uptick in rates following a series of cuts, experts anticipate a gradual decline over the coming year or two. Projections suggest that the base rate may decrease to 3.5% by the end of 2025, potentially maintaining mortgage rates around the 4%+ range.
In light of these developments, strategic planning is key. Over 1.6 million households are anticipated to remortgage this year, many of whom may be transitioning from rates as low as 2% or less. By 2027, the average interest rate across households, including those who remain on very low rates, is forecasted to peak at 4.2% in 2027, reflecting a significant increase from the lows witnessed in late 2021.
How We Can Help
Navigating the intricacies of the mortgage market can be a daunting task, but fear not - we're here to lend our expertise. Here are a few avenues through which we can support you:
Fixing the Rate: Explore the option of fixing your rate for a shorter duration or delve into offerings such as the "Fix and Switch" mortgage, offering flexibility without penalties.
Securing a New Rate Today: If you're on the brink of remortgaging within the next six months, we can assist you in securing a new rate now for switching when your deal ends, thereby bypassing early repayment charges. Should rates further decrease before your deal expires, we'll work with you to secure an improved option.
Consider Trackers: While trackers may appear enticing with predictions of a falling Bank of England rate by the summer, it's worth noting that fixed rates continue to hold prominence – and currently with lower rates.
Seek Professional Advice
It's important that the mortgage you select is suited to your unique circumstances, and we strongly recommend seeking professional advice. Our Mortgage & Protection Specialist is here to guide you through the process, from research right through to completion. We'll help you explore the best mortgage options to fit your budget and new home goals and ensure you have the right protection cover in place for peace of mind.
We're Here to Help!
The good news is, you don't have to be a client of Chesterton House Financial Planning to benefit from our expert mortgage and protection services!
Whether you're a client of Chesterton House or not, don't hesitate to reach out! We're happy to answer your questions, discuss your options, and help you navigate the exciting journey of buying a new home. Let's chat and make your move a smooth and successful one! Get in touch by phone on 01509 610472 or send us a message.
Important Mortgage Information:
It's important to note that mortgages are a serious financial commitment. Your home may be repossessed if you do not keep up repayments on your mortgage. To ensure you're making the best decision for your individual circumstances, seeking professional financial advice is highly recommended.