What the papers said about the housing market and fixed rates

As uncertainty over Brexit continues, the financial press looked this weekend at the impact on the housing market and consumer confidence. The Mail on Sunday highlighted recent figures that reveal the weakest start to the year since 2012. While the effect on the housing market in London and the South East has been noticeable however, experts reported that other parts of the country are still experiencing annual growth of more than 5% and an increase in transaction numbers. Low interest rates have certainly helped, both for homebuyers and those looking to stay put. As expected, concerns over rate rises have led to an increase in the take-up of fixed rates, and especially longer term deals. The Times revealed that the number of 10 year fixed rate mortgages has increased from 16 to 150 in the last 5 years, and average rates have come down, which is good news for those looking to take control of their finances for the foreseeable future. Borrowers are advised to consider their circumstances carefully before committing to a ten-year fixed rate, as these deals tend to carry substantial early repayment charges. It’s important therefore to consider any potential change in circumstances, and whether more flexibility is required.