After the latest comments from the Bank of England, financial analysts expect to see a rise in the Bank’s base rate from 0.5% to 0.75% in May, with another one expected to follow in the Autumn. This, in turn, can influence the cost of borrowing or the rate of interest charged when financial institutions, such as banks, lend money.
In November last year, the Bank of England raised rates to 0.5%, the first increase for a decade and are looking to gradually increase the interest rate over an extended period of time in the future. As a home owner looking to sell your current Leicester property and move, you may be thinking how does this affect me? Well the answer is simple, the higher the interest rates, the harder it becomes for people purchasing your property to gain a mortgage. This shouldn’t scare potential buyers away from purchasing properties, however the criteria banks use to decide exactly how much money somebody can borrow may alter.
So, what would a rate hike mean for Leicester house prices?
Traditionally, higher interest rates mean that house prices are lower, and experts anticipate this will remain the case if interest rates increase in May. Higher interest rates mean higher mortgage rates, which buyers don’t want, especially with economists warning of a personal debt crisis. However, it is important to remember that not everything financial experts predict does happen!
To get ahead of the interest rate increase that is expected, get your property on the market as soon as possible. Talk to our team today to arrange a property valuation and our team will also give you plenty of little tips and tricks to ensure you get the best price for your Leicester property.
Best time to buy
An approaching interest rate hike will give many reluctant prospective buyers the push to buy that they need. Many buyers try to wait for the perfect time to buy a new property, and with interest rates set to increase, now it a great opportunity. There really is no ‘perfect’ time to buy a property as nobody can see what is around the corner, but whilst interest rates are still on the lower end of the scale, if you’re ready to buy then make the leap!
As house prices and interest rates continue to rise, now is a good time to buy. However, buying a property is a huge financial commitment, and something which shouldn’t be rushed if you are not in a stable financial situation.
Should I sell my house now?
There will always be a slight fluctuation in Leicester property prices alongside the rest of the UK, but the current property market is strong. Now is a great time to put your Leicester home on the market, plus house sales typically increase in the summer months!
Are you’re looking for a Leicester estate agent with many years of experience in marketing properties with a record of selling houses swiftly? Get in touch with Open House Leicester today using either 0116 243 7938 or firstname.lastname@example.org and we’ll discuss how we can help sell your Leicester house quickly.