What are the best home buying tips? Mortgages and house prices explained by expert amid cost of living crisis
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Many people up and down the UK are facing great uncertainty as a result of the worst cost of living crisis in decades.
As well as soaring inflation in consumer prices - a problem that’s causing some people to struggle to keep up with their rent - homeowners might face an increase in their mortgage repayments as the Bank of England looks likely to raise interest rates in early May.
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Hide AdWith house prices also continuing to rocket, now might not seem like the best time to get on the housing ladder.
So what is the best advice at the moment for prospective home buyers?
NationalWorld spoke to Paula Higgins - CEO of consumer group HomeOwners Alliance - to hear what the best advice currently is.
With house prices rising, is now a good time to get on the housing ladder?
House prices are constantly increasing but we think it’s going to slow down.
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Hide AdOur index of home price indices (including those from Nationwide and Halifax) shows there’s been 14.4% growth in detached house prices over the last year but the figure is 8.1% for flats and maisonettes.
The rise has been down to people moving out of cities, as well as pent up demand and a lack of supply.
But business people are being forced to go back into work and are commuting again, which might force more people to move back into cities.
And while it’s a seller’s market, I think things will slow down as the cost of living crisis bites - for example, there’s a lot of uncertainty over things like wages and energy costs.
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Hide AdIf you’re a first time buyer, the way to look at it is that rents are also going up.
And while inflation is tough, it will erode the amount you’re borrowing so long as your wages are keeping up.
So, if you can move now - do it.
As interest rates are rising, should you go for a fixed rate mortgage?
Interest rates look scary but they shouldn’t put you off getting a two, three or five year fixed rate.
Remember inflation is on your side - it erodes what you borrow.
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