There's more good news for home buyers with the announcement that the Bank of England is poised to launch a new lending programme for banks. Roger Lake, tops director, said those hoping to buy or sell should welcome the news of government intervention as it will undoubtedly encourage the banks to improve their mortgage lending.
"Gordon Brown has met with leading bankers to discuss government intervention in the money markets," he explained. "Final details are still being worked out but the plan is to make it easier for banks to borrow and lend to each other, which in turn will facilitate better lending to individual borrowers. "This is very good news for all those who may be seeking a mortgage in the coming weeks and months - the signs are that rates will be turning and heading down again."

Listen to the experts
A lot has happened to the property market over the last six months, he continued, and despite all the gloomy headlines from national newspapers, much of it has been good news for buyers. "In truth it is also good news for sellers wishing to climb the property ladder by buying a bigger property," he added. "This view may be at odds with leading articles in national newspapers, but it should be remembered that their expertise and interest is in selling newspapers while ours is to guide and assist those wanting to buy and sell property around Norwich and across Norfolk."

Interest Rates Dropping
There have already been three interest rate drops since last autumn. The Bank Base Rate is now at five per cent, well down from the high point of 5.75 per cent in its current cycle. An economic bulletin from the Royal Bank of Scotland gives the expectation of two more interest rate cuts this year, further confirming that bank borrowing costs are heading south. "This is more fantastic news for buyers because by the time they find their ideal next home and move the process through to exchange and completion, interest rates might well have dropped once or even twice more, and mortgage rates with them," said Roger. "For new borrowers interest rates are starting to go down, rather than up. True, some of the appealing fixed rates may be more difficult to secure than last year, but experts within the industry believe that they should soon be replaced with other attractive fixed rates."

Lower Buying Prices
There is lots of evidence of properties now being sold at prices last seen over a year ago. Advertised asking prices may not yet be reflecting this, but sales really are being agreed at discounted figures, and the buyers of those properties are genuinely very pleased with the result. Most sellers are too because it enables them to move on up the ladder or exit the market if that is their wish. Lower prices means properties are more affordable, he said."

Widest choice and bargains
"There is currently a relative glut of properties on the market, with choice being good in all segments and price ranges," Roger went on. "The chances of buyers finding their ideal next home is higher now than it has been for some considerable time, and the better the choice the more enjoyable the process." "This is the news being fed back to us by would-be buyers who are studying websites closely. Being spoilt for choice is excellent news for buyers." There are some very attractive bargains about at the moment as well, he said. "While there are deals to be had at the moment, we don't expect them to be around for long, and the astute bargain hunter will need to be quick to capture the best of these," he added.

First Timers Return

Many of the properties that were beyond the reach of first time buyers have dropped in price and are now attainable. But they might not be available or affordable for long - an upturn will soon have them growing at a level faster than earnings, warned Roger. "The smart advice to first time buyers is to buy quickly if you can. There is one obstacle, namely that lenders are being less accommodating than in the past, and a deposit is now a pre-requisite," he said. "But while these new rules make the move into home ownership impossible for some, there are a large number of others who have access to deposits, could get assistance from family members or other private channels, making the current opportunity welcome news."

Summer Movers

There are lots of people who had temporarily shelved their home move plans but there is now evidence that many will recommence the process this spring and summer. Lower property prices and a wider choice are the added incentives for going ahead soon, and the recent government announcement should encourage them too. "There certainly is a lot of good news around for house buyers - mortgage lending should improve, prices are down, choice is excellent and summer will soon be here. These are all reasons why buyers shouldn't sit back and wait too much longer," said Roger. "Our advice is to take advantage of the price reductions currently on offer and to go flat out to buy as well as you can and quickly too. Then you can sit back and enjoy your new home."

back to home page.....