Would-be buyers confident on mortgage repayment
BSA research claimed just one third of consumers think that this monthly commitment is a barrier to buying a property – the lowest since 2009.
Affordability has improved over the past 12 months – in June last year mortgage repayments were thought to be a barrier for almost half (49%) of consumers.
This corresponds with average mortgage rates falling from 3.73% in June 2014 to 3.19% today. Lack of job security has also fallen as a barrier, while raising a deposit – the biggest challenge, remains steady at 59%.
With the economic outlook improving, 56% of people also think house prices will rise over the coming year. Only 12% said they didn’t think now was a good time to buy a property – the lowest on record since the BSA began conducting its research in 2008.
Paul Broadhead, head of mortgage policy at the BSA, said: “Whilst it is good news that sentiment remains robust in the housing market, we are still seeing some uncertainty.
“The number of people who believe now is a good time to buy a property has fallen by a few percentage points in the past quarter – possibly a result of the prospective bank rate rise towards the end of this year or early next.
“That said, with competition returning to the market, it is pleasing that prospective buyers now have more options when they do take steps to owning their own home.
“Just last week, data from Moneyfacts revealed that building societies were winning the mortgage war when it comes to rates. The average building society rate is 2.98%, 0.21 percentage points lower than the market. We encourage everyone to shop around if they are looking to get a mortgage. If they do, they are more likely to get a better deal.”