12/10/2022
If you are a first time buyer or were thinking of buying a BTL, have you decided to hold off for a while?? 🤔
According to financial data provider Moneyfacts, the average interest rate for a two-year fixed-rate mortgage surpassed 6 per cent for the first time since 2008😩
And while the average house price is set to fall by around 12 per cent by the end of 2024, according to Capital Economics, inflation is also expected to rise further, eroding savings for house deposits. The Bank of England has forecast that inflation could reach 13 per cent in January next year.
Another blow for first time buyers, buyers are being forced to prove they can afford mortgage rates of up to 8 per cent as lenders tighten their stress tests.
Banking giant TSB became the first High Street name to announce it was boosting its affordability checks yesterday amid concerns the Bank of England could hike its base rate to 6 per cent.
Brokers warn that other banks will follow suit as some say they are already seeing more borrowers being rejected for poor credit scores.
Look at the positives, if you have to wait a couple of years you have more time to save
