A Buyer’s Market

Economists are predicting the fall in house prices this year. Jean-Michael Six, Chief European economist at Standard and Poors, the Ratings Agency, predicted that if the global credit crunch were to continue without sight of it being resolved, there could be a fall somewhere between 10% and 15% This is bad news for sellers, but almost good news for buyers. I say almost because there are some good mortgage deals at the moment, but mortgage offers have dropped from 13,000 mortgage products to less than 3,000. This is according to Moneyfacts. A swing by the Bank of England expects 42.5% of British lenders to limit credit availability to consumers within the next 3 months. So make haste if you want to go for a good deal. At the time of writing, I believe HSBC had a 2 year fixed at 4.99% with a fee of #1499 with a 10% deposit.

If you want to venture into the buy-to-let market, proceed with caution, as buy-to-let lenders are not as free as they used to. They are now pulling the reins in. Years ago, in the UK before buy-to-let properties were popular, it was very easy for buyers to become landlords of second properties. Therefore, it is wise not to bite off more than you can chew. Plan before jumping head first. Buying property should now be seen as a long term investment, and not a short term plan.

Established landlords are seen more favourable by lending institutions, because they are seen as more experienced, therefore they pose less of a risk, than a first time buy-to-let landlord. Either way, buying at auctions would get you a cheaper deal, than buying the conventional way. Auction property For Sale is a popular and informative site listing forthcoming auction dates, as well as financial information relevant to all aspects of buying and selling property.