Although many people in the property market have concerns about what will happen in 2019, there may be reasons for vendors to be optimistic about selling their home this year. At Bond Oxborough Phillips, we are delighted to say we have helped many vendors sell their home locally, and there is good news in the shape of many lenders cutting rates.
Mortgage lenders operate in a competitive market. This means that rates are sometimes set on a competitive basis as opposed to strictly following what the Bank of England suggests. An example of this can be found with HSBC dropping rates on more than 30 mortgages. This includes their market-leading product, which has a 10-year fixed-rate loan. The fact that this mortgage is one of the ones that have been cut is positive news for buyers, but of course, this will also be positive news for vendors.
A range of mortgage lenders are reducing interest rates
Other lenders which have announced they are reducing rates including Coventry Building Society, Atom Bank, Natwest, Accord Mortgages and RBS. The fact that so many major firms have made similar moves in the market means that many buyers can benefit, and if this helps bring more buyers to the market, it should be of benefit to vendors.
After all, many vendors are currently not looking to sell their home at the moment because they worry that there isn’t enough demand for homes. If mortgage rates are lowered, there will be a larger influx of buyers in the market, and this will persuade more vendors to enter the market. Knowing that there are willing buyers who have the funds to purchase property has to be seen as a positive step for all parties in the market.
Darren Cook of Moneyfacts released a statement, saying; “We are aware from published mortgage approval numbers that there is a limited amount of mortgage business that banks and building societies are able to compete for, so it is likely that recent rate activity in the fixed-rate sector demonstrates that competition for business is indeed rife. Our research shows that mortgage providers have generally left their ranges unchanged during the second half of December, but it seems that some providers have been quick out of the stalls early in January to make sure that they take a competitive advantage into the new year.”
Vendors must be ready to meet new demand from buyers
This means vendors must be ready to sell, so if you are keen to sell this year, it is time to start preparing your home. At Bond Oxborough Phillips, we are pleased to offer support and guidance in selling your home, and we look forward to ensuring your home appeals to prospective buyers.
Not all lenders have followed this approach. Organisations like Paragon or the Mortgage Works have opted to increase rates, with Paragon also reducing their cashback amounts.
However, the fact that there is likely to be movement in the market is positive news and vendors should be prepared. If you’re looking to sell your home, contact Bond Oxborough Phillips and we will do our best to assist you.