RPC Land & New Homes News
History is in the making, as mortgage lenders complete to offer the best rate, with certain lenders reducing their mortgage rates to a mere 0.99% APR. Banks are increasingly able to offer such competitive rates, as they have themselves been able to take advantage of the government’s funding for lending scheme and now have large reserves of money from which to lend. This offer also comes in the wake of the Bank of England’s announcement that base rates are highly unlikely to rise until well into next year.
The base rate has been at a historic low of 0.5 % since March 2009. On top of this, a slight slowdown in housing market means banks are clamouring to entice people back to buy homes. This all marks a fantastic opportunity to potential purchasers of course, to take advantage of these ultra-low rates and buy a home. That is if they are prepared to endure the gruelling new MMR questions, which in recent months have been contributing to a modest slow down in the housing market.
Introduced earlier this year, the new mortgage lending rules ask potential borrowers very detailed questions about their income and expenditure to ensure they can pay back their loans, even if interest rates rise, which has substantially increased the length of the mortgage approvals process.
The Council of Mortgage Lenders (CML) said its latest figures added to evidence of a ‘plateau’ for mortgage lending and housing market activity. Gross mortgage lending reached £17.8bn in September it said, down 1% from August, though still 10% higher than in September 2013.
Furthermore, signs that the economy is cooling, coupled with the prospect of an interest rate rise next year, means some buyers are taking a step back from the housing market. However, for those who are prepared to endure the short term pain of the mortgage approvals process, they could find long term gain with such low rates available.
At RPC Land & New Homes we offer a variety of new homes from a wealth of quality developers across Kent and Medway offering much to tempt a potential buyer who may still be unsure if now is the right time to buy.
Many of the development schemes available to our customers also offer a variety of new homes from a wealth of quality developers across developers across Kent and Medway offering much to tempt a potential buyer who may still be unsure if now is the right time to buy.
Many of developments schemes available to our customers also offer incentives, such as, Help to Buy making the financial prospect of purchasing a home easier.
However, although the CML data indicates that activity in the housing market has lost momentum when compared to the early months of 2014, the potential that the Bank of England will not lift interest rates before mid-2015 has prompted a short-term lift.
RPC Land and New Homes has experienced its own pre-Christmas flurry of sales with many purchasers keen to spend the festive season in their new homes. This brings a very positive outlook to the housing market as this exceptional sales year draws to a close.
For more information visit: www.rpclandandnewhomes.co.uk