Moving to Lower Mortgage Payments Becomes Priority – BSA



Moving to Lower Mortgage Payments Becomes Priority - BSA

According to a survey by the Building Societies Association (BSA), more than half of people considering moving home say their main reason is lower mortgage payments.

The importance of moving home to save money has risen since a retailer last conducted its Property Tracker survey, rising from 37 percent in December to 51 percent in its most recent report.

The BSA noted that while it was difficult to determine the reason for the survey respondents, it pointed to people increasingly wanting to move out of cities.

The study also found that about 73 percent of people said increasing their personal open space was their priority, while 62 percent of people said moving away from built-up areas in favor of nature is their priority. The BSA said this is a significant increase over previous studies.

He added that lower mortgage rates could also be a factor, as those relocating will want to make sure they get the best deal. Bank of England data show that the two-year fixed 75 percent mortgage value at 1.86 percent in December fell to 1.46 percent in May.

The study also found that the biggest obstacle to buying real estate was attracting a deposit, with 59% of those surveyed citing this as the biggest problem.

Job insecurity declined as a concern, with about 45% citing it as a problem, up from 68% in September.

BSA Head of Mortgage and Housing Policy Paul Broadhead (on the picture) said: “Among all the positive signs in the housing market, it is important to note that almost half of the respondents are concerned about the safety of their jobs.

“While this is a downward trend, it remains clear that there are many people for whom the pandemic continues to have a negative financial impact, and it is important for lenders and the government to ensure that adequate safety nets are in place to provide households with the support they need. when they need it, ”he added.

Consequently, the BSA reiterates its call for the government to shorten the waiting time to apply for mortgage interest support so that homeowners can quickly access additional security.

The study also found that confidence in the housing market was high, with a third believing it was a good time to buy, although that figure was down from 37% in March.

The BSA attributes this to a stamp duty weekend deadline in June and a rise in house prices.

About half of the respondents expected prices to rise in the next 12 months compared to the December quarter.


Source link