What you can afford may be more important than the mortgage rate
TPPUK posted on 3rd Tachwedd 2022
Affordability rather than rising mortgage interest rates should be the focus within the property market, according to Urdd y Gweithwyr Eiddo Proffesiynol.
Local estate agents & auctioneers Williams & Goodwin The Property People who also trade as All Wales Auction have been selected as the best independent agents in Gwynedd & Anglesey by The Guild, who state that there is no evidence suggesting a correlation exists between historical interest rates and property transaction volumes.
Interestingly, to support this claim evidence shows there were more mortgages approved when interest rates were at 15% than there were during the boom that has followed the recent pandemic. Then, the monthly repayments would have been higher, but lenders had an appetite to borrow, and people continue to move.
It is claimed that affordability controls the market not the mortgage rates. Rather than focusing on the rate, buyers should be focusing on what they can afford and the cost of the mortgage on a month-to-month basis.
Melfyn Williams, director at Williams & Goodwin commented:
“We believe the current situation where economic factors are pushing up rates should not act as a barrier to property purchases. For someone looking to buy a home to live in, the driving force behind their decision will be whether they want to live in the property for the next five to ten years”.
“Property should always be seen as a medium- to long-term investment, especially when you consider that statistically every homeowner that has kept their property for a ten-year period would have seen an increase in the value of their property.
“So, rather than focusing on rising interest rates, the question should be about whether the buyer can afford to purchase the property now and be able to afford it in the years to come.”
The Guild of Property Professionals CEO – Iain McKenzie highlighted:
“Since 1975, the Bank of England’s base rate had not been below 4% until it dropped to 3.75% and then 3.5% in 2003. Before the financial crisis, interest rates went up to 5.75%, and then were dropped to 0.5% in 2009. While interest rates remained low until the recent hiking phase, the upward trend should be seen as a return to the norm”.
“Inflation is at its highest level for over 30 years and the mechanism the Bank of England uses to try and curb and control it is the interest rate,” he explained. “High inflation causes many economy issues and at a rate of 10%, which is well over the 2% target, it needed to be addressed”.
Melfyn Williams concluded:
“If the Bank of England continues pushing up rates we could get to a point where a 5% mortgage rate is the norm, this only returns us to where we used to be, at the long-term average of interest rates”.
Prisiad Sydyn Am Ddim
Ydych chi am werthu neu osod eich eiddo? Cymerwch y cam cyntaf a darganfyddwch beth yw gwerth eich eiddo gyda phrisiad rhad ac am ddim heb rwymedigaeth.
Williams & Goodwin The Property People are members of the Guild of Property Professionals, National Association of Estate Agents, Association of Residential Lettings Agents, National Association of Valuers and Auctioneers and are Chartered Valuation Surveyors we are members of a National Network of approximately 800 independently owned and operated Estate Agents.
Diolch i bawb yn Williams a Goodwin am eich gwasanaeth ac ymdrech i werthu ein ty! A diolch i Gemma yn arbennig am ymateb i phob ebost a galwad yn brydlon a cadw ni ben ffordd.
Diolch!
Scott D
During the purchase of our property. We dealt with the Holyhead branch. From our first viewings (not just the property we bought), they were very professional and dealt with all our enquiries fast and efficiently. Unfortunately, part way through our purchase, the sellers of the property we were purc...
Sara Hughes
I cannot recommend or thank Williams&Goodwin Holyhead Branch enough for their support and guidance as I bought my first home. From the friendly viewing accompanied by Jamie to the continued reassurance, communication and updates from Charlotte, the team were so approachable and professional thro...
Megan Dixon
Elizabeth Margaret Jones
Well what can we say, a brilliant service from Caron Sally and Gemma and Amy , they went out of their way to make our journey less stressful, Caron was always there to listen to me when I was worried about anything, and thank you also to Dafydd .
Ceuron Parry
Gemma, our estate agent, truly made the process of buying our first home a breeze. From the very beginning, she was incredibly supportive and attentive to our needs, guiding us through every step with patience and expertise. Her in-depth knowledge of the local market and her keen eye for detail help...
Catherine Fiona Richmond
Absolutely 💯 % customer service keeping everyone up-to-date in the process
John Lewis
Williams And Goodwin at Llangefni provided an excellent service throughout the process of selling our property. Caron and her colleagues were very efficient and helpful. Initial valuation was well organised turned out to be very accurate. Enquiries were handled quickly and effectively. Very useful t...
Llinos
Hoffwn ddiolch i TPPUK am werthu fy eiddo ar fy rhan. Roedd Dafydd yn wych a’r broses gyfan yn ddi-drafferth. Roedd Gemma yn y swyddfa yn arbennig ac yn fy niweddaru’n gyson ar ddatblygiadau. Buaswn yn argymell TPPUK I rywun sy’n meddwl gwerthu- proffesiynol a gwasanaeth cwsmer rhagorol.
Diane Foster-Deam
We have had a 7 month marathon,from putting an offer on a property,to exchange of contracts. We have had pretty poor communication from solicitors,who have made this journey very stressful. The only saving grace has been Gemma, from williams and goodwin. Her support and professionalism has been out...
