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Is it too late to get on the property ladder?

For those shopping round for a mortgage at the moment, they may be disappointed by the interest rates they find.

It was only last year when buyers had the opportunity to pick up mortgage deals at under five per cent.  Only a few weeks ago, it was possible to pick up long term fixed rate mortgages at some low rates with a good deposit.  Just a few short weeks later, already the national average has increased and is showing little signs of dropping for those purchasing properties with 15 per cent deposit or less.

The current mortgage interest rates are still cheap when you look back at the records over the last few decades, but with the current economic climate as it is the housing market seems to be struggling to recover despite news in the last few months showing a number of positive signs.

Property sales are picking up however unemployment is still notoriously high.  With the Bank of England’s base rate at a record 0.5 per cent, the only way forward from here is up and mortgage lenders know that borrowers will be looking to fix their interest rates.  Until mortgage lenders become more confident in the market, it is highly unlikely that we will see interest rates much lower than they are now.

Those looking to get on the property ladder at the moment need to make a decision on the direction of their finances and costs.  Current housing prices are low, but whether or not the housing market has bottomed out yet is anyone’s guess despite the green shoots of recovery beginning to show. Unfortunately, mortgage advisors can only advise on the best deal for a borrower’s situation and expectations of the market and cannot give predictions.

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