When is the best time to buy your new home?

Recent developments reveal thousands of pounds worth of savings for prospective property purchasers…

With the cost-of-living crisis looming above us all, and the current economic climate in dismay, many households around the nation are choosing to delay their new home plans in the hopes of an improved financial situation in the New Year.

But now we are seeing some rays of hope shining for all prospective buyers – as mortgage interest rates continue to drop from the dizzy heights reached in the weeks immediately after September’s mini budget. In October the cost of a 5-year fixed rate mortgage with a 10% deposit soared to around 6.5% and nearer to 7% if your deposit was 5%. Fast forward 8 weeks and mortgage rates have tumbled on average by 1.75%.

So, what does that mean for you?

Well, 5-year fixed rate mortgages with a 10% deposit now start at around 4.85%, and at around 5% where your deposit is half this amount, reducing more than 0.25% in the last week alone!

Essentially, this is suggesting that long term mortgage interest rates are set to fall – finally! This, in turn, will mean that if you were to take out a £300,000 5-year fixed rate mortgage at 90%, you could save thousands of pounds over the five-year term – which we’re sure would come in handy when it comes to the ever-increasing price of energy bills, groceries, and general living.

Plus, to make that new home light shine a little brighter, it is predicted that house prices will also fall in 2023. Between now and 2024, the prices of homes around the UK are set to tumble by 9%, according to the Office for Budget Responsibility. This news will come as a relief to many, as steep housing price increases in recent months have prevented many from finally purchasing their dream home.

Helen Pierson, Director at MAB New Homes Comments: “We continue to support buyers into and beyond 2023 by presenting as many mortgage solutions as possible to those wanting to move or get onto the property ladder. Some may not even know they can secure the finance they need, others might think the market has shifted too far beyond their reach when the opposite is true, as appetite to lend is actually increasing and mortgage rates are coming down.”

“Being prepared is a great way to smooth out the homebuying experience. Time spent on getting organised beforehand reduces the stress of the journey, making it a far more exciting and enjoyable experience! Those who want to embark on owing their own home should start by utilising the services of a quality adviser who understands all the options available.”

Alongside the plummeting interest rates and house prices, there are more savings to be had when it comes to purchasing a new St. Modwen home. Thanks to handy appliances and additions in new-build homes, such as water saving devices and airtight spaces to keep the heat in, energy use is significantly reduced in comparison with older properties.

On average, a new-build home built by us could save you up to £2,355 a year* in running costs alone.

All of St. Modwen Homes’ properties are built to be as energy efficient as possible – with both your pocket and the planet in mind. Specialist features such as large windows to reduce the need for artificial lighting, and insulated walls, floors, and roofs to keep your heating bill as low as possible are just a few ways in which a St. Modwen home can save you thousands.

So, with house prices dropping, interest rates tumbling, and the possibility of stacks of savings – what are you waiting for? Take a look at your nearest development and find your new home today!

*Figures based on UK regulated average gas and electricity prices set in October 2022 in comparison to Victorian homes. Please note, annual prices will vary depending on each homeowners’ energy usage.