How To Weather A Turbulent Housing Market

The property market has for the last few years been a constantly shifting set of unprecedented circumstances for estate agents, buyers and sellers alike, the most recent of which has been a sudden rise in mortgage rates.

With average fixed mortgage rates reaching over six per cent for the first time in years, and considerably fewer mortgage products on the market compared to the start of 2022, navigating the housing market requires a different approach, one that varies depending on whether you are remortgaging or a first-time buyer.

People on a fixed rate mortgage with over a year left may be best waiting for the unsettled market to calm and overpaying what they can to reduce the amount they will need to remortgage, which could help, in turn, reduce the increase in mortgage repayments.

For people on a variable rate or tracker rate mortgage, it is worth seeking advice from a mortgage broker about whether it is worth the cost of switching to a new fixed deal to lock in their payments for the next few years compared to taking a chance that rates will eventually fall.

For people who are planning on buying in the current circumstances, the recommendations can depend on individual circumstances but suggest getting a long-term fixed rate mortgage agreement in principle locked in and securing the property.

The logic here is that whilst there is a chance the rates could fall, the cost of security and knowing which repayments to budget around may be worth the potential for more expensive repayments in the event the market settles.

However, whilst acting swiftly may be important, it is key to get independent mortgage advice before making any major move in a volatile market, and with so many different financial circumstances, what is the best solution for certain people may not be the best option for everyone.