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Brexit uncertainty has created a mortgage market that benefits the buyers, expert says

WeBuyAnyHome.com CEO Elliot Castle, a renowned property expert, has stated that since the June 23rd referendum result, the word ‘uncertainty’ has been echoed everywhere.

While the property industry has been affected by the recent economic and political instability and change, it has effectively transformed into a profitable mortgage market for buyers as opposed to sellers.

Mr Castle said that the change was attributable to trends he had witnessed. They include investors across the globe being less inclined to favour UK properties, people finding it more challenging to save for a deposit, mortgages becoming easier to acquire, and the public being reluctant to easily make large financial decisions. He pointed out that the number of mortgages has increased since the referendum.

The Bank of England reduced interest rates in August 2016, making mortgages easier for first-time buyers to afford, so Mr Castle recommended that anyone who currently had a mortgage attempt to seek a better deal by remortgaging.

Mr Castle also said that buyers and sellers are being more careful as they wait to see which direction the housing and mortgage market will take. Their decision to wait in favour of seeing how the economy develops over the next two to three years has been difficult for the housing market, particularly in London.

He explained that London and its suburbs enjoyed a flourishing property market for years thanks to both national and international investors pouring money into housing development. The result was a major competition that allowed sellers to reap greater profits. Now these investors are unsure about whether their money is secure in the capital and this has deterred overall investment not only in London but throughout the UK.

 

Specialists in Construction Insurance

In light of these changes, Mr Castle provided advice for both buyers and sellers.

First time buyers should:

  • Use a mortgage advisor to track down the best possible rates in a varying mortgage market
  • Be forthcoming with your finances: when going to showings, present financial documents regarding deposit and mortgage agreement details to show property owners and estate agents that you are serious about buying
  • Request a viewing when the owner is present, to build a rapport and ensure that they remember your offer

Sellers should:

  • Set a realistic asking price by researching other properties in your area and asking for some independent valuations
  • Ensure that the kitchens and bathrooms are spotless: a Rightmove study suggests that buyers are turned off if they find either one in poor or dirty condition
  • Declutter the home as much as possible, so that potential buyers can see the space better and the interior looks bigger

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