27 June, 2021
The Homebuyer Roundup #2
Get the adviser view on the week’s homebuying headlines.
This week in homebuying
More buyers are paying the asking price (or more) for their home than ever before. 37% of homes that changed hands in January went for at or above asking price - that figure is usually around 25%. We reckon things are likely to calm down again soon when stamp duty holiday fever wears off.
Mortgage rates are still low, and likely to stay that way, which is good news for anyone looking to take out a mortgage in the near future. The Bank of England voted yesterday to keep the base rate at its record low of 0.1%.
But brokers are warning buyers to watch out for so-called “honeytrap” mortgages, which tempt you in with a low headline rate and then sting you with high fees. Check out your plan to see an example deal you’d be eligible for, including the monthly repayments and any fees attached.
Trending in the app
When you set your target in the Multiply app, you can tell us where you’re looking to buy and we’ll show you homes in your budget in that area.
Some places are more popular than others. Check out the top 10 places Multipliers want to get away from, and where they want to move to:
The homebuying headlines
Record asking prices
Property asking prices have risen again for the third month in a row according to Rightmove. The property site says the average asking price has hit a new record of £336,073 after rising 0.8% in June. Some property experts reckon the boom might be starting to slow down though, as the stamp duty holiday comes to an end.
Brokers are warning home buyers to watch out for “honeytrap” mortgages* that seem like good deals but come with high fees. In a race to offer the most attractive deals, lenders advertise a competitive headline interest rate - but the extra product fees can outweigh any savings. The average fee on a fixed-rate mortgage is now £1,075, up £57 from last year.
Achieving asking price
37% of homes that changed hands in January 2021 were sold at or above their asking price, according to Rightmove. That’s a record high - usually only around 1 in 4 sellers achieve their asking price. Even homes that sold for below asking price in January achieved 98% of the amount the seller was hoping for, on average.