Brits are buying and selling homes again [photo: Pixmedia]
Britons buying homes again
Monday, 08 May 2006 16:25
Britons are returning to the property market, with a big increase in the number of people buying and selling homes.
New figures from My Mortgage Direct indicate that confidence is returning to the property market after a subdued 2005.
"The year started on a positive note and, as we predicted, has continued to show a steady increase in homeowners moving upwards and onwards instead of staying put and playing safe," said Cath Hearnden, joint director of My Mortgage Direct.
The new figures show that between January and March there were more than twice as many people moving home compared with the same time last year, and a 15 per cent increase compared with the previous three months.
And the Bank of England's decision to keep interest rates on hold for the last nine months has been partly responsible for this increase, My Mortgage Direct argues.
"Borrowers are being more considered and cautious than in recent years," said Ms Hearnden.
"They’ve waited and watched and now believe they won’t get any sudden nasty rate rise shocks.
"Last year saw a strong re-mortgage market and first-time buyers were also back in the frame, but this is not enough to sustain the market alone. We are pleased to see the major players back on stage."
As to which mortgages are proving the most popular - telephone broker My Mortgage Direct reveals that trackers top the list.
"It’s probably fair to say that trackers can win the popularity contest simply due to a lack of imagination from borrowers," added Ms Hearnden.
But she questioned whether this was the best option.
"There are some excellent fixed-rates available but the majority of borrowers are swayed by the immediate benefits offered by base rate stability and worry about missing out if rates go down further.
"There’s always a chance that rates will rise so often the best time to fix [your mortgage rate] is at times like this. The prudent borrowers - 30 per cent - have spotted this and acted accordingly."
To find some of the best mortgage rates on the market, check out MyFinances' mortgage calculators here.
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