Buy or Rent for 6 months?

DTG25

Hi all

I'm currently living with parents and have managed to save a 5% deposit for a small house. I am starting to look for properties, however the increase in the average mortgage rate today has made me wonder if I'm better off renting for 6 months to see if there's any improvement in rates?

Any advice is appreciated 

Thanks 

steve866

Stay with your parents (if possible) and save the money you’d spend on rent which I assume would be higher than what you pay your parents. 

View properties and weigh up the price vs mortgage rates and make a decision. Your search may well take longer than 6 months anywayz

DTG25

Very true but I'm losing my mind living here lol - escape is thr only option 🤣 Plus I have 2 kids so I want somewhere for them ASAP! 😭😬

MultiFuelBurner

Going on the above buy and just budget well.

Sarah1Mitty2

DTG25 said:

Hi all

I'm currently living with parents and have managed to save a 5% deposit for a small house. I am starting to look for properties, however the increase in the average mortgage rate today has made me wonder if I'm better off renting for 6 months to see if there's any improvement in rates?

Any advice is appreciated 

Thanks 

Well rates are already improving, as in they are moving back to more normal levels where savers get a return and people are encouraged to borrow within affordable limits, those are both excellent improvements, but don`t expect rates to go back to where they have been, the whole global/credit situation has changed, watch Bloomberg news on occasion for in depth discussion on why this is happening and best advice would be to stay at the parents for longer and start investing your money to take advantage of all these changes, don`t throw your deposit away on the tail-end of a property bubble.

lookstraightahead

MultiFuelBurner said:

Going on the above buy and just budget well.

This. I'm all for people renting but the rates at the moment aren't really that bad, I would personally just take a fixed rate and cut your cloth to fit. By the time your fixed rate ends they may come down so you can fix again at a lower rate and be better off. You might get a good deal on a property too.

Issue really is those who paid too much for their properties during the recent mayhem who are now coming to the end of their low fixed deals and haven't budgeted for the increase.

silvercar

These interest rates could stay for years, buy now based on mortgage rates. As for house prices, good areas will always attract a premium, cheaper areas may see a drop.

Sarah1Mitty2

Buying now with only a 5% deposit could see you in negative equity very quickly, have you done any viewings, had a mortgage approved, had any feedback on valuations from lenders? If not (or even if) II think you should press Pause, wait until interest rates find their top and then wait to see the effect on prices of where and what you want to buy.

https://www.independent.co.uk/news/uk/politics/mortgages-interest-rates-inflation-sunak-b2369076.html

...and download PropertyLog to keep an eye on prices/sentiment in your area.