Is there ever a perfect time to get a mortgage? Ultimately, none of us really want a mortgage; we’d all rather buy a property outright. However, sadly for the vast majority of us, this isn’t possible. However, if you are considering applying for a mortgage, or are thinking of remortgaging; now could be the ideal time – and here’s why.
The current property market is seeing a large house price inflation growth. House price inflation has hit a seven-year high of 10.9%; Zoopla states that the current average value of a UK property is £326,558.
At the same time, the debate around a property-fuelled inflation bubble seems to have gained traction. Even the Financial Times recently reported on how the Bank of England expects inflation to rise above 3% in the coming months.
So, back to the question posed in the headline, then. Given how property prices are climbing (although for how long is anybody’s guess) and rates are the lowest; and therefore cheapest that they’ve been for many years, the answer is yes, now is the perfect time get a mortgage.
The main reason as to why now is that if property prices continue to climb and inflation continues to rise; we may see the Bank of England increase interest rates. The result of which will make mortgages more expensive. Looking at this in the context of household income, any increase in mortgage rates could bump up the household income needed to buy a property even further.
Our team strongly believe that now could be the calm before the storm. The prime home buyer environment, if you will. So, on that basis, our view is that if you need to get a mortgage, contact our friendly team of mortgage experts right away.
Whether you’re looking for a first-time buyer mortgage, to invest in a Buy-to-Let or even remortgage, The Residential Mortgage Hub can help. Contact us on 01634 968111 or book an appointment online.
