Mortgage rate drop prompts buyer confidence
The UK has seen its biggest property market bounce since 2016 following a drop in mortgage rates.
A new report from Rightmove found enquiries up more than half in January 2023 when compared with last month.
Demand usually increased in January after a pre-Christmas lull, but experts are calling this 55% hike the biggest bounce since 2016.
Buyers are feeling more confident about making an offer due to the combination of falling mortgage rates and appropriately priced properties.
According to an article in The Telegraph, the average two-year fixed deal has dropped from 6.65% in October to 5.63% today.
This is down from 5.79% since the beginning of the month.
This small change could mean a saving of thousands in interest payments over the lifespan of a typical 25 year mortgage.
Here at Russell Homes we have seen enquiries for properties at Stubley Meadows in Littleborough and Brook View in Wincham increase by more than 300% on December’s figures.
Sales manager Jackie Matheson said: “December is traditionally a quiet month and we usually expect an upturn in January, but just two weeks into the new year we are seeing record numbers of enquiries and I’m delighted to report a number of them have converted into confirmed reservations.
“The fall in mortgage rates is welcome news for our buyers and for the industry as a whole. It’s also really important to shop around to find the best deal, as it’s not always your existing provider or the obvious big names who are giving buyers the best deals.
“If our buyers need help arranging a mortgage we can put them in touch with an experienced Independent Financial Advisor (IFA) who will be able to assist.”
Visitors to the Brook View show home launch weekend on January 28th and 29th will have the chance to enjoy a free initial consultation with an IFA to discuss requirements.
Pop in anytime from 10am to 4pm or book a slot by emailing sales@russellhomes.co.uk