The property market in the UK continues to make headlines, with the average house price climbing by 3.3% in the year to November. This growth reflects the resilience of the housing market despite economic uncertainties and rising living costs. As a prospective homebuyer or homeowner considering refinancing, this upward trend is more than just a statistic—it’s a signal to evaluate your mortgage strategy carefully.
The current situation
According to recent data, the average house price increase has been driven by several factors, including limited housing supply, increased demand, and shifts in buyer preferences. While this growth rate is slightly lower than in previous years, it indicates a stable market that continues to attract interest.
However, rising house prices also mean higher entry points for first-time buyers and increased competition. For those already on the property ladder, this could signify a boost in equity, which opens up opportunities for refinancing or moving up the ladder.
What does this mean for your mortgage?
First-time buyers:
If you’re entering the market, a 3.3% rise in house prices means you may need to adjust your budget or explore government schemes such as Shared Ownership. It’s essential to secure a mortgage deal that aligns with your financial goals and offers flexibility as you navigate the market.
Existing homeowners:
For those with existing properties, the increase in house prices may have boosted your home’s value. This presents an opportunity to leverage equity for renovations, a second property, or a better mortgage deal through refinancing.
Buy-to-let investors:
Investors may see this as a sign of potential capital growth. However, higher property prices mean it’s crucial to assess rental yields and ensure your mortgage terms are sustainable in the long run.
Tailoring your mortgage strategy:
With house prices rising, securing the right mortgage is more important than ever. Here’s how we can help:
- Market analysis: We monitor market trends and can advise you on the best time to buy or refinance, ensuring you make informed decisions.
- Tailored advice: Whether you’re a first-time buyer or a seasoned investor, we tailor our advice to suit your financial circumstances and property goals.
- Access to lenders: Our whole of market approach means we have strong relationships with a wide range of lenders which allows us to find competitive rates and terms that meet your needs.
- Long-term planning: Rising house prices are part of a broader economic cycle. We help you plan for the future, ensuring your mortgage remains manageable as your circumstances evolve.
Looking ahead
While a 3.3% rise in house prices may seem modest compared to the double-digit growth seen in previous years, it underscores the importance of proactive mortgage planning. As the market continues to evolve, aligning your financial strategy with expert advice can make all the difference.
Whether you’re looking to enter the market, refinance, or expand your property portfolio, we’re here to guide you every step of the way. Contact Mark Chadwick on 01254 679131 or alternatively mark.chadwick@pmm.co.uk to discuss how we can help you navigate the changing housing market with confidence.
PM&M Mortgages Ltd is an Appointed Representative of The Right Mortgage Ltd, which is authorised and regulated by the Financial Conduct Authority.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
