Whether you are thinking about buying your first home in the UK or you are planning to expand or downsize, it is to your advantage that you take a closer look at the current market conditions. Interest rates on home mortgages in the UK are at historically low levels and normally you may be wondering how long the interest rates will stay this low or if they will go even lower in the near future.

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Whether you are thinking about buying your first home in the UK or you are planning to expand or downsize, it is to your advantage that you take a closer look at the current market conditions. Interest rates on home mortgages in the UK are at historically low levels and normally you may be wondering how long the interest rates will stay this low or if they will go even lower in the near future.

Lower mortgage rates can help you to build more equity in your property at a faster rate, reduce your principal balance quickly and afford to purchase a larger, nicer home. But what if the mortgage rates shoot up? It would be devastating to find yourself paying huge mortgage payments to pay off your house. Thus, before you make your decision on what to do — consider a few points.

A Word About Market Conditions

Based on interest rates, market conditions are ripe for home buyers to seize the moment and act on a new home purchase. Rates for some mortgage programmes are close to 2%, and this means that they likely will not drop much lower. It is, however, impossible to predict how long rates will stay lower or if they would increase dramatically over time.

Many home buyers over the years have attempted to speculate about what the market will do. With so many domestic as well as international factors driving the rates, this is simply not possible to do. Therefore, it would be to your advantage if you decide on a fixed rate mortgage when applying for home financing. This way you can be sure even if the interest rates go up, your mortgage payment is not affected.

Your Own Financial Situation

It is important to look at current market conditions when you make a decision about when and how to act. However, it is also important to review your own financial situation. Ensure that you are economically ready to make this move, and avoid making a hasty decision to take advantage of low rates. Keep in mind that if rates do inch upward, they will likely do so at a slow pace.

Even if you are not able to take advantage of a 2% mortgage rate today, you may still be able to qualify for a rate later that is only slightly higher. It is often better to be fully financially ready and to have a slightly higher rate than to rush into a home purchase before you are ready.

While you want to pay attention to market conditions, it is also important to review your personal financial situation before making a decision. If you are ready to move forward with a purchase, taking advantage of the current historically low interest rates may be wise.