Rate rises mean tenants put purchase plans on ice ...

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27 July 2023

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Rate rises mean tenants put purchase plans on ice

Almost one in five renters say high mortgage rates mean they can’t afford to buy now and have put purchase plans on hold indefinitely.

A further one in eight say they would stay renting until prices came down when they would then be able to purchase.

Only six per cent of renters already planning to purchase say they are continuing as scheduled despite rate changes.

That’s the message from the latest survey from brokerage The Mortgage Lender.

A quarter of those still planning to buy say that they’re now buying away from traditional commuter towns, and 32 per cent have had to move further from their preferred city centre.

Others are having to reconsider the potential of the properties themselves, with one in five saying that they’re buying a cheaper property that needs more renovation work, and one in eight looking to buy smaller properties instead.

Steve Griffiths, chief commercial officer at TML, comments: “The journey to buying a property can be a long one, and it can easily be complicated by the ebbs and flows of the housing market, particularly when we consider the current landscape. Although being adaptable and regularly checking in on the base rate will serve renters well in the long term, it’s understandable that so many are feeling frustrated by their options.

“This really highlights just how vital it is to speak to a broker early about your property ambitions. They can help breakdown how much you can afford, as well as any other available options. If it’s not the right time to buy now but you plan to in the future, make sure you are still working towards becoming ‘mortgage ready’. This will ensure when the time is right you are prepared to take that next step. Even in challenging times, potential buyers should remember that there are lenders that can support them, and a broker will be key in being able to help find the best deals.”

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