The headlines are certainly dramatic! Following 14 consecutive increases we have a respite in the form of a stay by the Bank of England leaving interest rates at 5.25% by split decision. Read more on this from the BBC here.
If I had a sporting analogy to hand it would be a boxing one! The bell has rung and those in the residential property world retreat to our respective corners to take a breath and assess what this means for mortgages. I certainly wouldn’t be confident betting on an outcome but those who are living this unsettled environment must navigate higher interest rates, uncertainty and short mortgage offers while simultaneously having to cope with longer average transaction times. Having help is key, not just a good mortgage broker but also property professionals who knows what to do to protect you to make sure that the risks are managed.
Recently I have come across very short mortgage offers that are estimated to run out before the conveyancing transaction is ready and in the case of new builds before it’s likely to be physically complete. Lenders who are refusing to confirm that funds will be released as well as being more risk adverse and generally more lender orientated stress that were previously rare when interest rates were historically low. Of course it was never thought that borrowers could not get a mortgage offer extended automatically or that they could afford it but now it should be at the forefront of everyone’s mind. We shall be watching the developments very closely and can only hope that the interest rates will stabilise sufficiently to work alongside.
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