Buyers “Waiting in the Wings” for Cheaper Mortgages
The number of homes being bought and sold has dipped slightly, as people across the country hold off on making big decisions before the next interest rate announcement.
Official figures from HMRC show that in June, there were 91,370 completed house sales. This is a drop of less than 1% compared to May’s figures (91,880 sales).
Experts reckon that this small drop is because many buyers are waiting to see if the Bank of England will cut interest rates, which would make mortgages cheaper.
Tony Hall, at mortgage company Saffron for Intermediaries, said that the June dip wasn’t a surprise. He reckons that despite what happens with interest rates, things are looking up for the housing market. He’s noticed more lenders battling it out to offer the best deals, which is good news for buyers.
There’s also a buzz around the new government’s plans for housing, which seems to be making people feel more confident about buying and selling.
Mortgage Experts Remain Upbeat
Kevin Roberts, the head of Legal and General Mortgage Services, pointed out that the housing market has been holding steady recently, even with all the uncertainty surrounding the general election. He believes that all eyes are now on what the Bank of England will do with interest rates.
The good news is that there are already some great deals on mortgages out there. For the first time since April, it’s possible to find a fixed-rate mortgage with an interest rate below 4%.
Ben Waugh, from More2life, another mortgage company, agrees that things are looking positive. He reckons that the dip in sales is just a temporary blip and that we’ll see things pick up again soon. This is partly due to more lenders offering better deals, but also because the Bank of England might lower the base rate, making borrowing money cheaper.
Will Interest Rates Fall in Autumn?
Mark Harris, from SPF Private Clients, says that it’s understandable that the number of people buying and selling homes has dropped a bit, what with the election and higher mortgage rates. He says this has made some people hesitant to move right now.
However, he believes that things are looking up. Lots of mortgage lenders are cutting their rates, which could mean more sales in the coming months.
And, like other experts, Harris believes that if the interest rate falls in the Autumn, it could encourage more people to take the plunge and buy or sell a house.