RSS FeedsCan the house market gloom get any worse?
27/06/2008
The mortgage market in the UK seems to be getting worse just when lenders and homeowners think things have got to improve. The situation has got so bad that first time buyers and lenders have gone on strike.
The situation is not helped by house prices continuously falling with many parts of London a further fall in prices by £25,000. This situation is not encouraging for homebuyers especially first time buyers who are particularly cautious at this present time.
A number of lenders have increased rates in this uncertain environment. First direct was offering a two year fixed deal at 5.49% a week ago and by the week end, rates had increased to 5.99%.
Richard Morea at London and Country Mortgages said "A lot of people are, understandably, asking themselves if they should be buying at the moment. You can fix your rent for the next six months, save for a higher deposit, sit it out while interest rates go up and watch house prices fall. I can see no reason why a first-time buyer should want to buy in this market." He said this as there seems as though theres no incentive for first time buyers to enter into the housing market at the current time as even mortgage brokers who are keen to sell loans confess that the current climate is difficult.