As more people attempt to take advantage of plummeting housing values, they are quickly finding it very difficult to get a low rate mortgage. Although the housing value downturn may actually help sales of homes, it won’t do much good for those that are unable to get a low rate mortgage. Right now, rates are at their highest levels in years and banks are adding on extra fees to low rate mortgages, making them more expensive than ever.
Keith McNeilly, co-founder of Moveme.com, said: “Contrary to a lot of the negative headlines, the majority of movers would rather see house prices fall than rise over the short term. Over the last eight years, house prices have increased by more than 120%. This level of growth was never going to be sustainable over the long term and as a result, the recent fall in house prices is being welcomed, particularly by those looking to step onto or move up the housing ladder.”
“The average price of a flat in May this year was £183,266, that’s over seven times the typical starting salary of today’s graduate and likely first-time buyer. The increasing plight of those at the bottom of the ladder is no secret and the current stall in house prices is likely to improve the affordability for those currently unable to afford their own home.”
Related reading: Low Rate Mortgages
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