City pundits and financial experts are still trying to fathom out the real implications of last week’s budget from Chancellor Rachel Reeves.
Let’s take a quick look at what’s changed and what you might want to consider if you are thinking of buying your first home or moving to another.
Stamp Duty
The surcharge on second homes has increased by 2%, bringing the total to 5%. This will impact those purchasing additional properties, so if you’re a current buy-to-let investor or had been thinking of becoming a landlord it's going to be crucial to factor this additional cost into your budget.
Energy Efficiency
The government is pushing for improved energy efficiency in homes. This could mean that properties with lower energy ratings might be less desirable or require upgrades in the future, impacting both the purchase price and ongoing costs. Pay close attention to the Energy Performance Certificate (EPC) rating of any property you're considering.
Interest Rates
The budget's impact on inflation and interest rates is still uncertain. Some experts predict higher interest rates for longer, which could affect mortgage affordability. It's essential to keep an eye on interest rate trends and secure a mortgage offer that suits your circumstances. That said, the Bank of England’s Monetary Policy Committee is meeting this week and the market’s are still in favour of a small 0.25% cut.
Regional Differences
The housing market can vary significantly across the UK. Some regions are experiencing higher house price growth than others. Researching local market trends and seeking advice from local estate agents can help you make informed decisions.
First-time Buyers
While the budget didn't introduce any major new schemes, there are existing initiatives like the First Homes scheme and Help to Buy equity loans available in some areas.
It’s always worth exploring the options and determine if you qualify for any assistance.
Financial Planning
It’s always worth considering your long-term financial goals and how homeownership fits into them.
As well as potential future interest rate rises It’s also important to look at other unexpected costs, such as what you’ll do if your boiler breaks down or what happens if you suddenly need to fix your roof after storm damage.
Repairs can be costly and it will be worthwhile looking at what insurance options are available.
Professional Advice
Seeking advice from mortgage brokers as well as financial advisers can provide valuable insights and help you navigate the complexities of the housing market.
Market Outlook
The property market is constantly evolving. Stay informed about market trends, new developments, and expert predictions to make well-informed decisions.
Patience is a Virtue
Finding the right property and securing a mortgage can take time. Be patient, flexible and be prepared to adapt your plans as needed.
Buying your first home or moving to another property is a personal experience – unfortunately it’s not a one size fits all process.
Remember, smart choices start with expert advice – speak to your mortgage adviser to get the best for your financial future.
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