Wednesday, 5 January 2011

is now a good time to buy property ? part 2

 while the BSA said two-thirds of the people it surveyed saw a weaker housing market as a buying opportunity, the fact remains that fewer will be able to take advantage the current conditions.
There will definitely be some fantastic opportunities out there. The problem will be securing the mortgage finance to do it.

The mortgage environment will continue to remain tough in 2011. Only those with substantial equity in their home or large cash deposits are going to be able to secure a mortgage deal. In addition, lenders are now reluctant to offer interest-only mortgages, and are restricting how much money they will advance relative to a borrowers' income.

New mortgage rules introduced by the Financial Services Authority are likely to make this lending environment even tougher. Given these restrictions, many who are looking to get a foot on the housing ladder or snap up a bargain buy-to-let property will find they can't get a mortgage at present – at any price.
As a minimum you will need a 10pc deposit, but even here, rates aren't particularly competitive, given the Bank Rate stands at just 0.5pc

Mortgage rates however are far more competitive for those who have at least a 40pc deposit. For those with the money, the housing market could well offer up a few bargains next year, but for everyone else it looks like being more of the same.

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