SPECIAL FEATURE: Can prospective buyers fulfil their homeownership dreams amid rising inflation? – PRIMIS Mortgage Network

SPECIAL FEATURE: PRIMIS Mortgage Network has written an article discussing whether prospective buyers fulfil their homeownership dreams amid rising inflation.

With high inflation prompting the Bank of England (BoE) to implement multiple interest rate increases in quick succession, the support and guidance of a professional adviser is more valuable than ever in helping prospective homebuyers understand the options available to them.

According to HMRC’s data, non-adjusted UK residential property transactions fell in June but recovered from this dip in July, increasing by 7.2% (and up 32.9% year on year). Add to this the still-increasing house prices – the latest UK House Price Index data from the ONS showed that average UK house prices increased by 7.8% in June – and a BoE base rate that is set to top 4% by the end of the year, and we have a clear picture of the complex challenge facing homebuyers today.

While some prospective buyers may be reconsidering their plans to purchase a home in response to such changes, the mortgage market remains strong and buoyant, with an influx of remortgage and refinance activity taking up a large proportion of advisers’ time. This is set to persist for the rest of 2022.

There are a number of mortgage options available for consumers and with the right broker advice and support, they can actualise their dreams of buying a house even during the ongoing economic uncertainty. We are seeing lenders adapting to the changes and actively thinking about affordability, by increasing offer periods and opening up product transfers two months earlier. This is giving borrowers the opportunity to lock in rates ahead of further BoE interest rate rises.

Advisers are in a strong position to signpost the best products for prospective buyers and help them navigate a dynamic market. But more than that, brokers can provide ongoing support to both prospective buyers and those who have held off on their plans to buy a house. They can help customers in these two categories re-evaluate the risks and benefits of different courses of action as both their personal and financial circumstances and the wider economic conditions change over time.