Industry forecasts for the property market indicate a steady rise in house prices in 2010. If you already have a mortgage offer in place, going ahead now before house prices rise may be desirable.
With demand for properties increasing and supply still limited you may be forgiven for thinking you should wait. However this strategy may not pay dividends for first time buyers.
Recent months have seen a gradual increase in mortgage options available from lenders. Estate agents report that there more buyers than sellers of property. With property prices increasing, first time buyers are likely to find the same problems they had pre credit crunch.
In the past 12 months house prices have increased by 10% and are forecast to continue to rise by 6% in 2010. Acting now could avoid disappointment in the traditionally busier seasons and avoid unwelcome competition when more buyers are on the market.
Currently lenders are looking on first time buyers favourably as they are an active sector of the market. For first time buyers with larger deposits, a wide choice of comparatively low mortgage rates are available. Alternatively for those looking for a higher loan to value mortgage (LTV) lenders are offering as much as 95% of the property’s value.
As more properties come on to the market for sale it should follow that house prices growth will slow. The Centre of Economic and Business Research believe that house prices will increase by 20% by the end of 2013.