According to one of the UK’s major mortgage lenders, Home prices in the Uk have just shown the first signs that the market is beginning to stabilise, and find a balance between Home Buyers, Home Sellers And Mortgage Fund Providers.

This truly is welcome and heartening news for the Home market particularly and the general economy as a whole. Nonetheless, if we’re planning on getting back into the Home market seriously, and certainly before We buy Homes at all, we still need to employ the kind of care which has been missing amongst Home Buyers over the last few years.

It seemed for a while that all anyone needed to do was put up a sign saying “Buy my House”, and any numbers of potential buyers were beating a path to their door with cries of “We buy Houses! Sell to us!”

Nowadays it’s completely different. Just because someone invites you to “Buy my House” doesn’t mean you have to respond and dive in quickly. Remember, Home prices are still falling, even though slower than before. That means, when We buy Homes, time is our ally, because the longer a Home is for sale, the lower its price tumbles.

Of course, as we’ve just said, the latest news put out by the UKs most important Mutual Society in the mortgage market, tells us that Home values are currently falling much slower than they’ve done for many months. So it could well be that we are approaching the bottom of the current Home Price slump.

Therefore it appears that now may not be such a bad time to buy Properties in the UK. However, you should always apply sound principles & make a clear assessment of the whole situation before you commit yourself.

Firstly, do all the due diligence & pay the extra for a thorough survey to include a report on the Home’s condition, any title complications, flood & future development risks, problem neighbours etc.

Secondly, ensure you’ll have enough equity in the property in case Home prices tumble another 20%, because they’ve not finished dropping yet.

Next be sure you can manage the repayments now, and with a reasonable safety margin for when interest rates soar as the economy improves.

Finally, be sure you have enough liquid cash to live and pay your mortgage for at least 3 months, because if you’re unfortunate enough to lose your job, that’s how long you’ll have to hang on before you get any government help. You just don’t want to be pushed into a distress sale to one of those “We buy Homes” companies.

Filed under: Finance

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