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Mortgages - what you need to know about the current housing market crisis

With the cost of living on the rise, many are now reconsidering if now is the right time to buy. Mortgages have been a widely debated topic over the last nine months due to the constant changing of interest rates and requirements. So, if you’re saving for a big property purchase, you may be rethinking the timing.

Mortgage updates:

According to the Guardian, mortgage rates continue to rise. The rules around mortgages and affordability continue to change, it is important to speak with a financial planner to see how these changes affect you and your financial goals.

Here at Schofield, we work with you to help you achieve your financial goals. Taking the time to understand your financial status is the most important part of financial planning. If you’re looking to make a big financial decision or purchase, it’s important to ensure that you’ve got a secure financial plan in place.

How can you prepare for buying a house?

There are many ways you can prepare for buying a house. The first step is to assess your budget and finances. Keeping up to date with your current financial situation, as well as reassessing them will enable you to potentially free up additional funds to place into savings.

After you have assessed your finances, the next step is to set some goals. Look at the housing market and the average cost of the house you are considering purchasing. Use this figure as a benchmark and calculate the deposit cost, you can speak with a financial planner who will be able to assist you with this phase.

Once you have your goals, you can then begin to build your savings. There are many types of accounts you can set up as well as different ways to save. Speaking with a financial planner will help you decide which option is best for you. Once you are close to your goals you can then begin looking at any additional costs that are involved with purchasing a house, such as; solicitors fees, survey costs, stamp duty, etc.

TIP: When you have reached your target, continue saving as you were before. This way you create a cushion to cover unexpected costs or a further budget to redecorate when you do move.

Schofield is always on hand to help those who are at any stage on their financial journey. Our team is dedicated to providing you with the best advice possible that works for you for any long term or short term financial goals.

Should you wait until the housing market crashes, if it will crash?

The cost of living crisis has made many people concerned about the housing market. And rightly so at times, the pandemic had thrown the housing market into disarray and we are currently seeing house prices at an all-time high.

However, with all that being said it is never a guarantee that house prices will fall. Many could be waiting years before this happens. Always speak with a financial adviser to help you assess what is best for you.

How can you make the best of the current housing market crisis?

When looking at the current housing market our main piece of advice is always going to be to do what is best for you. Find a house that suits your needs, and plan to stay there for 5+ years. Panic buying a house just to get onto the property ladder only serves the seller in markets like the one we are experiencing. So the way to make the most of the current housing market is to buy what you need and has the potential to last you years.

Buying a house is the most stressful experience people can go through.

Having a financial planner you can trust is just as important as finding the right house. Speak to our team now to see how we can help you achieve your financial goals.

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