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Buying a Home in 2022? What You Should Expect

MORTGAGES | 04.02.2022

The housing market saw a lot of disruption in 2021, factors such as the pandemic and a stamp duty holiday influenced homebuyer activity. Even encouraging some buyers to postpone till this year. Whether you’re a first-time buyer or you’re looking for a new property there are still a number of things to take into consideration that may affect your mortgage in 2022.

Consider the Market Before Buying a Home 

If you’re looking to buy property you may be wondering if the housing market will remain as it was last year, in a state of frenzie. In 2021 the market was driven mainly by homebuyers, many trying to seize their opportunity to purchase property in advance of the stamp duty holiday ending in July. The lifestyle changes many people experienced during the pandemic may also have been responsible for the increase in those looking to buy property. Whilst the housing market looks as though it will remain busy this year. There may be a shift towards more stable and predictable seasonal fluctuations. Indicated by the dip in house prices in December and the following rise in the new year. A result of many homebuyers choosing to postpone over the Christmas period.  If you are looking to buy this year, researching the best time to buy in your area will likely be beneficial. Especially for first time buyers who aren’t familiar with what the housing market has looked like outside of the last few years. Seeking the advice of a mortgage advisor may also be beneficial as they may be able to guide you to the best times to buy.   

Selling Your Property in 2022

By contrast if you are in the market to sell your property, 2022 could present itself as the perfect year to do so. Last year sellers held a strong place in the markets as there was an increase in those buying a home. This will likely remain the case over the course of this year. Finding a buyer for your property should continue to be an easier task than it has been in the past. So long as you set an appropriate asking price for your property.   

Buying a Home For The First Time in 2022

The market however may continue to not be as kind to first time buyers as it looks to be for those wanting to sell. Looking back at 2021, house prices shot up and many properties sold far above an appropriate asking price. Making it even more difficult for first time buyers. These prices are not expected to fall in 2022, and whilst not ideal for those buying for the first time, price growth may eventually slow down.   

Are 95% Mortgages the Solution for Buying a Home This Year?

Rising inflation and a lack of wage increases mean that saving a big enough deposit is one of the toughest things facing those looking to buy in 2022. To counter this, 95% mortgages were reintroduced last year. In hopes of enabling more homebuyers. If you are looking to buy this year and are struggling to save a large amount for your deposit, you may want to consider a 95% mortgage. Homebuyers only need to save for a 5% deposit with this kind of mortgage. In England currently the average price for a 5% deposit is around £11,000. Which may be more attainable than double that for a 10% deposit. Be aware however, if you are interested in a 95% mortgage, your interest rates will likely be high. 

Rising Interest Rates, a Cause For Concern?

Mortgage rates for 2022 look like they will increase compared to last year's figures. In 2021 rates fell and remained fairly low. The opposite appears to be the case for this year. However the good news for those with smaller deposits is that it may be less of a cause for concern. Rates for those with 90-95% mortgages fell so dramatically last year that the increases this year may not outrise 2021’s drop. First time buyers who will most likely opt for these mortgage conditions may therefore be in luck in this instance.  If you are considering buying a home in 2022, our team of mortgage advisors is here to chat and guide you through the application process.
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