Is it the right time to buy?
The UK housing market has reached a plateau this autumn - a situation welcomed by some
, but a source of despair for others.The Nationwide building society says prices have "stagnated", without any change on the latest three-monthly comparison of average property values.
Meanwhile, the lack of supply and demand of home loans means that lending in the UK mortgage market is at very low levels.
So how does this affect different groups of people looking to move home, and what can they actually do to boost their chances of obtaining the mortgage and house they want?
First-time house buyers
A social divide is likely to widen owing to difficulties in securing a mortgage without access to a large deposit.Young first-time buyers who get financial help from their parents are much more likely to get on the property ladder.
More mortgages with a deposit of less than 25% are available now than was the case a year ago, he says, but the bigger the deposit, the more competitive the rates.
A rough estimate would show that an extra 5% deposit offered would make a mortgage interest rate .5% cheaper.
The glimmer of hope for first-time buyers is the fact that prices have stagnated and show few signs of rising quickly in the near future.This means that there is less pressure on buyers to put in an offer swiftly, fearing that the price would keep going up if they delay for a few months.The increasing numbers of properties coming on to the market mean first-time buyers can haggle on prices.
Take asking prices with a pinch of salt, buyers should look seriously at two or three properties, rather than setting their heart on one which might be overpriced.
Family upgrading to a larger home
Those with a tiny amount of equity left in their home, could be in a similar position to first-time buyers.
As with first-time buyers, it is vital to keep up a good credit rating so that a competitive mortgage may be obtained.Lenders may now also ask for the last three months of bank statements, so extravagant spending might be better put on a credit card and then paid off immediately, rather than on a debit card where the spending is obvious to the lender.Making sure that all utility bills are paid and up to date, ensuring that all family members are on the electoral roll, not habitually switching/closing bank accounts all help to maintain a good credit score. Potential purchasers/sellers should check out all available price information on the Internet.
They must also pay the most attention to the differential relating to the price they're selling and the one they are buying at - and ensure that this is within manageable levels.
Pensioner looking to downsize
With many properties coming onto the market, there is no need for those retiring to rush into switching to a smaller home,Securing a mortgage could be more of an issue than finding a home
the very fact they are downsizing means that their equity will go further.However, lenders are less than keen to lend mortgages to clients who will still be paying them off after the age of 75.With the default retirement age likely to be scrapped, the amount of people working at this age will probably increase.
Borrowers should check out their timing to make certain their mortgage is paid off by the time they eventually do retire.
Relocating within the UK
The housing market varies across the UK, with different property values and different rates of price change in local areas.
Market research of the area that the buyer is hoping to move to is vital, armed with all the relevant price information, will allow for an infomed sound decision. Prices are influenced by local issues, such as schools, new developments, and the future of big local employers.
However, over time, prices do have a tendency to catch up in areas that have lagged behind the national average, or slow down when prices have been over-inflated.
So flexibility in timing when to buy is key, it is worthwhile looking at the trend in prices where you're looking to move to, and making a judgement.
People often do not do enough homework on the local market because of the distances involved in searching for properties somewhere new.
Meanwhile, the self-employed face a further hurdle of mortgage lenders' doubts over giving home loans to those with a variable income.
Is it the right time to buy?
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