In the last year, some changes in interest rates and wages have meant that first-time house buyers have had some pressure removed from them.
Conveyancing specialists have recognised that a range of changes have improved the chances of new buyers passing affordability checks for a mortgage.
Some of the recent shifts that have positively impacted home buyers include the lower interest rates. These mean that, on average, those applying for and securing a mortgage will be paying approximately £260 less than the average rent. This means there is much more incentive for people to buy rather than renting a property.
Another change which solicitors offering services like conveyancing in North Wales have noticed is the rise in worker’s pay. This increase, no matter how small, factors positively into mortgage applications and scrutiny around affordability. Mortgage costs, when compared to wage levels, have decreased by around 2% since 2022.
One final contributor to favourable conditions to first time buyers especially, has been the stagnation of property prices. When first time buyers calculate their mortgage costs they are seeing now that a growth in property prices of about 2% is favourable when compared to average salary rises of just over 6%.
A combination of these three conditions in the housing market has meant that for the first time in several years, there is growing confidence from first-time buyers about taking on a mortgage.
Here at Bennett Smith Solicitors, we can guide you through your first house buying process with one of our experts, so contact us now to discuss.
