Don’t miss out – take ad­van­tage of these low in­ter­est rates

Yorkshire Post - Property - - PROPERTY - Franz Muehlthaler Q. Should I even bother look­ing to buy and just rent in­stead as I’ve heard I wouldn’t get a mort­gage any­way?

37 per cent of home­own­ers, ris­ing from 35 per cent from Jan­uary 2011, but home­own­ers could be miss­ing out on the low­est fixed rate deals on the mar­ket for decades.

Home­own­ers are still re­frain­ing from re-mort­gag­ing to a fixed rate deal un­til the base rate starts to rise and a huge 46 per cent of home­own­ers have not re­viewed their mort­gage at all since March 2009 when the base rate first hit 0.5 per cent and 16 per cent be­lieve the base rate is so low they do not need to worry about re­view­ing.

But it’s the per­fect time to look at fixed rate, not only be­cause it of­fers se­cu­rity but more im­por­tantly the base rate re­mains at a record low of 0.5 per cent. With fixed rates fall­ing be­low five per cent for the first time in decades and the threat of fu­ture in­ter­est rate rises be­com­ing more real, there are deals to be done.

Home­own­ers re­ally could be miss­ing out on the best fixed-rate deals out there and all be­cause they are not seek­ing or re­ceiv­ing the right ad­vice from an independent source.

A. You should bother to search out the right ad­vice. it is well worth the ef­fort.

The an­swer isn’t easy as for many the op­tion to buy or rent is like been trapped be­tween a rock and a hard place. It’s im­pos­si­ble for first-time buy­ers to pro­vide a big enough de­posit to get a mort­gage, which in turn is in­creas­ing de­mand for rental ac­com­mo­da­tion and push­ing up rents.

Rents are ris­ing at al­most twice the rate of earn­ings so it’s hard to save for a de­posit. Part­ner this with in­fla­tion and sav­ings rates at un­prece­dented lows the whole sit­u­a­tion be­gins to look im­pos­si­ble.

Just to il­lus­trate the ex­tent of this the Buy-to-let In­dex recorded monthly rises in all re­gions for the first time on record in Septem­ber.

On a monthly ba­sis, rents rose in all re­gions of Eng­land and Wales for the first time on record. As a re­sult, rents hit record highs in six re­gions – Lon­don, the South East, York­shire and the Hum­ber, the East of Eng­land, Wales and the East Mid­lands.

Also Rightmove’s lat­est Consumer Rental Fore­cast shows that the gap be­tween rental de­mand, as mea­sured by search ac­tiv­ity, and sup­ply, mea­sured by avail­able prop­er­ties for rent, widens fur­ther.

How­ever more and more lenders re­lax­ing their views on high loan to value’s, with Bar­clays be­ing the lat­est to in­crease max­i­mum LTV from 85 per cent to 90 per cent.

The for­got­ten op­tion is that of par­ents and while the term “guar­an­tors” maybe a bit out­dated, there are a num­ber of as­sisted schemes avail­able to utilise the par­ent or par­ents.

There is talk of Govern­ment spon­sored schemes, and some do ac­tu­ally ex­ist on se­lected de­vel­op­ments, but for the or­di­nary buyer look­ing at any house very lit­tle help from the Govern­ment ex­ists.

As with any prob­lem it is al­ways a good idea to seek independent ad­vice re­lat­ing to your own cir­cum­stances and needs as ev­ery sit­u­a­tion is dif­fer­ent, which makes the so­lu­tion unique too.

An independent mort­gage bro­ker is a good way to achieve this.

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