Essentially Mortgages – Quarter four 2017

There are signs that first-time buyers are finding it slightly easier to get into the housing market. Prices have slowed in many areas of the country. Research from estate agent chain, Haart1, shows that in August the average purchase price for first-time buyers fell by 10.2%, meaning that buyers benefited from the summer market slowdown.

A survey carried out by the HomeOwners Alliance1 shows that around half-a-million people aged over 55 would like to move to a smaller property with lower running costs. Housing experts point to this as an effective way to help address the UK’s housing crisis, as it increases the supply of much-needed family-sized homes available in the market.

Some economic commentators are predicting that there could be a price correction in the housing market before too long. They believe that this could signal a drop in prices of anywhere between 20 and 40%. In the late 1980s and early 1990s, for example, prices fell by 40%.

Getting a mortgage can be nerve-racking. There are lots of different deals on offer, so how do you find the right, most cost-effective deal for your circumstances? Should you fix the rate, if so, how long for? What about deals offering ‘extras’, would they suit your needs? Making the wrong choice about your mortgage could cost you hundreds or even thousands of pounds more than you need to pay.