The North East of England is a thriving region of the UK, with a number of new-build housing estates currently under construction. And, while in some UK regions house prices are moving further beyond reach, that’s not the case for Teesside, Tyneside and other north-east areas.
That’s not to say house prices don’t rise here – they do. In fact, recent house price data from lender Nationwide shows house prices in the north of England rose 0.7% between April and June this year. Online estate agency Rightmove, meanwhile, recorded the same rise in asking prices during the month of June.
That’s good news for home owners whose property value is on the up. However, it’s also potentially good news for first-time buyers who are in a position to think about buying a home.
Support from Interest Rates
While there is talk that the Bank of England (BOE) could begin raising interest rates sooner than previously anticipated, right now, mortgage interest rates are hovering around record lows.
Figures from the BOE show that as of June 30th, the average interest rate for a 2-year fixed, 75% loan-to-value mortgage, was 1.48% – only a little higher than the recent record low of 1.35%. The average 5-year 75% LTV fixed rate mortgage, meanwhile, fell further to the lowest level on record of 1.99%.
If you can secure one of those great mortgage interest rates for your below average priced new-build home in the north east, you’ll be getting an even better deal than people who live in other UK regions. Of course, with house prices in the north east edging higher, you might think now isn’t a good time to make an offer.
Just stop for a moment to consider what else is happening in the UK, right now. There’s political disarray, Brexit talks are causing ripples among investors from overseas to the UK and there’s still too little property being built in the country. That puts people with a deposit and good job prospects in an excellent position to do some hard bargaining.
Credit History Worries
Even if you’ve made one or two financial mistakes in the past, now is still a good time to try and grab a rung on the UK’s housing ladder, particularly with excellent offers available on the new builds in Northumberland Village, Newcastle Quayside and Northallerton, among others. That’s because low BOE interest rates still apply to all kinds of lending.
Yes, loans and mortgages for people with a less than perfect credit history do come with a premium interest rate. However, according to Moneybanker, that premium is currently lower than usual. Combine it with good prospects for north east house prices and it makes sense to move now to buy a home.
If you want to take that step, ensure you’ve got your mortgage agreement and deposit securely in place. That puts you in the best bargaining position to buy a home of your own in your favourite north east region, at a price you’re happy with.