Thursday, 17 July 2014

Should I buy or rent? Here are our top 5 reasons why buying could be the right option now

Many people have rented rather than purchased property over recent years, principally because of barriers such as the difficulty in saving such large deposits and being able to afford a mortgage. Thanks to a market place where more people are moving, often utilising incentives such as the help to buy scheme, we are seeing the number of first time buyers increasing.  So why is now a better time to buy rather than rent? Here are 5 good reasons to buy:

1.       Friendly low interest rates

As things stand the cost of a mortgage is relatively cheap. With interest rates at a record low many lenders are offering great products including fixed rates which providing financial security over the next few years. 

2.       The money you earn is securing you an asset – not somebody else!

Renting is relatively easy however you are handing over your hard earned cash for someone else to own something you could have for yourself.  At least, when you have a mortgage you are working towards owning the house, when renting you pay someone else to own the property without ever having the opportunity to own it yourself.

3.       Help to Buy ends in 2020

Although 2020 seems a long time away and leaves plenty of time for potential home buyers the chance to access the scheme.  Many factors can change. A government regime change may mean early closure of the scheme and there is always the potential for interest rate increases. We would advise making the most of this scheme as soon as you can, while other factors in the housing market remain positive.

4.       It’s a busy housing market

Lots of activity in the housing market means there a lots of people looking to move. We have noticed that activity has picked up, particularly in lower value property meaning there are now options for people working on a lower budget.

5.       It’s your house – do what you want with it!

When purchasing a house you earn the right to design, furnish and decorate it exactly how you want - there are no landlords to answer to.

If you want more advice on the schemes available you can find more detail on

Friday, 4 July 2014

Do you really understand what the cost of purchasing your dream property is?

An increase in interest rates has been a hot topic over the last few weeks in the finance world. With house prices rising month on month some experts feel the housing market is beginning to overheat. One way in which the Bank of England can look to counteract this issue is by increasing interest rates but how much will this really affect homeowners?
One research study by Experian (Telegraph) shows that buyers are already underestimating their potential mortgage repayment by £500 a month. This could rise to nearer £650 if interest rates do in fact increase. Given that the Telegraph estimates that an interest rate increase could affect two out of three mortgage borrowers, this could have a significant impact on people’s lives.

What we recommend

There is a lot of uncertainty at the moment about how much people can really afford due to recent rules introduced by the FCA and also what impact an increase will have. We recommend that people take caution when calculating your budget for a new house and consult an experienced mortgage professional to gain accurate figures on how much you can afford, but also to ensure that your monthly budget is not hurt too much by your mortgage payment!