Posted on 13.2.15 by Lorraine Lockie
According to recent reports released by the Bank of England, the UK are in a unique position whereby mortgage rates have almost halved in the last 12 months, meaning there may never be a better time to take out a mortgage.
Sources have stated that the next six months will provide potential house buyers with the cheapest rates the UK has seen for many years, due to alleged price wars between lenders. However it is expected that this unique dip will begin to rise again towards the end of the year.
The head of lending at the Mortgage Advice Bureau, Brian Murphy, has been quoted as saying:
“The next six months are shaping up to be the best-ever window to secure a low interest rate if you are looking to buy or re-mortgage.
“Today’s prices have never been bettered in modern times and given that a Bank Rate rise is inevitable at some point, it is unlikely they will be surpassed in the years ahead.”
Data released by the Bank of England states that an average property priced at £200,000 will be approximately £100 cheaper a month, than it would have been 12 months ago.
It has also been said by The Telegraph, that banks are also introducing more affordable fixed-rate contracts, allowing customers to secure cheaper repayments for up to a decade. However despite mortgage rates being at a record low, young people attempting to get on the property ladder are faced with significantly higher house prices than previous generations, forcing them to borrow more.
According to Halifax, figures have shown a 2 per cent rise in prices between December and January, taking the average value of a residential property in the UK to £193,130. Many have speculated that this unexpected increase was due to the December’s stamp duty reforms
At Gorvins Solicitors, we understand the strains that purchasing a property can cause, which is why we have a dedicated residential and conveyancing department, devoted to helping you cope with the process. To help you on your journey, we have created a comprehensive Stamp Duty Calculator, so you have one less thing to worry about.