What Mortgage Can I Afford?
14 October 2022
When it comes to being a first-time buyer, mortgage applications can seem like a confusing maze – if you’re unsure about what mortgage you can afford, you’re not the only one…
2022 has been an unpredictable year for finances, including the housing market and house prices that have continued to rise exponentially.
As with the majority of other price increases in Britain, it is normal to wonder if there will be a house market crash in 2022.
Read on to find out when and if we think house prices will go down…
The cost of living crisis has been affecting households throughout the UK, and with fuel prices rocketing, and grocery shopping being more expensive than normal, the housing market has been affected at a similar rate.
According to Rightmove statistics, record prices were hit in June 2022 with the average house being listed and sold at £368,000.
Undoubtedly, the unaffordable prices of homes, alongside the cost of living crisis making it even harder for people to save money, is making homeowners wonder whether a housing market crash is underway.
The house prices within the UK are increasing at an astronomical rate, but why?
One of the main issues of the housing market right now is that there is too little supply to meet demand, meaning that when there are houses available – the owners have increased prices due to the lack of housing.
On top of that, the cost of living crisis is making it more difficult to be able to save up for a deposit as fuel prices have hit ultimate highs and priorities for day-to-day life don’t include savings for many households.
First-time buyers are having an extremely difficult time and those selling their homes are competing with the ever-rising inflation rates.
We can’t predict for certain what the future will hold, but a house market crash in 2022 is quite unlikely.
The prices of houses are beginning to steadily decrease as the rate of demand slows and people are beginning to have smaller house deposits.
The increasing rate of the cost of living and rising inflation could cause a slow in house-hunting, therefore, causing the house prices to drop more due to less demand, making housing more accessible for first-time buyers soon.
Although there is uncertainty in the housing market and it may seem like a steep hill to climb, we are here to help and guide you through times like this.
We understand how tough house-hunting can be, and the finances that go along with it, so feel free to drop us an email to matthew@mortgagetohome.com for any mortgage advice, or just a helping hand.
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