Is it a good time to get a mortgage in the UK?
Choosing a good time to get a mortgage can often feel like a bit of a lottery - especially recently when the economic climate in the UK has been so unpredictable, due to uncertainty caused by Brexit and the General Election.
So with Brexit officially taking place on 31st January 2020, and the general election now over - is this a good time to get a mortgage? Here are a few things to consider when making your choice...
1) The end of the Bank of England Term Funding Scheme (TFS)
This scheme provided mortgage lenders with low cost funding which amounted to £127 billion. In turn, companies were able to pass these savings on to their customers in the form of lower rates on their mortgages.
Now that the scheme has ended, we have seen best-buy mortgage rates rising and expect this to continue, so now could be a good time to grab a good rate before they go up again.
2) The possibility of a no-deal Brexit
While Brexit has already taken place, the UK are still in a period of transition while we try to work out a trade deal with the EU. The Prime Minister has said that this period will continue until the end of 2020,
If no deal has been agreed by this point, then economists have predicted a down turn in the economy. Accountancy firm, KPMG have estimated that house prices could fall between 6-20%.
As a home owner, now could be the perfect time to remortgage as we go through what housing expert, Kate Faulkner has described as the 'Brexit Bounce'. She explains that many people have held back from the property market during 2019 while Brexit was still being debated, but now that it's official, we're seeing a surge of people looking to buy and sell in the early months of 2020. She has speculated that this may lead to a corresponding surge in house prices.
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3) There's never been a bigger choice for first time buyers
A recent article in The Telegraph highlights that the current range of mortgage deals available to first time buyers is the highest that it's been since May 2019.
Meanwhile, Which are predicting that affordability rules could be relaxed this year, which could benefit cash-strapped first time buyers too. They're also speculating that we may see an increase in longer term mortgages available, with 40 year mortgages becoming more popular.
4) Your own personal circumstances
The fact is, knowing if it's a good time to get a mortgage will often have more to do with your own personal situation than anything else. We would always suggest chatting to an expert who can fully analyse what's going on in the property market - as well as what's going on for you specifically. Here at BB Mortgages, we've helped hundreds of clients to find the right mortgage - no matter what the political climate, so if you're thinking about getting a mortgage or remortgage, we'd love to chat to you - whatever your circumstances, so book your free consultation now!
