How Cheadle homebuyers can overcome their current jitters

Buying a home is a monumental decision and a major milestone at any point in your life, let alone with the current uncertainty and escalating cost at the moment. It’s easy to get overwhelmed by the prospect of taking on such a huge financial responsibility. If you’re feeling nervous about home buying, you’re not alone. In this blog post, we’ll share some tips on how to overcome those home buying jitters and take the plunge into homeownership.

Financial worries

One of the most significant concerns for those looking to buy a home is financial worries, especially with the current high interest rates and cost-of-living crisis. It’s common for people to feel like they’re in over their heads; however, there are a few things you can do to ease your financial concerns and feel more comfortable about making the investment.

New Bank of England data has revealed that approvals for mortgages on houses shot up to 54,700 in June. Economists had predicted a drop to around 49,000.

The number of people applying for remortgage approval increased from 34,100 to 39,100, showing homeowners were trying to do a new deal before interest rates increased any further.

The Bank of England (BOE) has just increased the interest rate again for the fourteenth time consecutively to 5.25%, taking it to a new 15-year high. For the third day running the average two-year fixed residential mortgage rate was 6.85% on Thursday according to data firm Moneyfacts and a drop to 6.36% for the average five-year fixed rate. Yet there are signs that the rates are perhaps starting to level out. NatWest has stated that its mortgage rates were lowering by 0.2%-0.3%, similar reductions have been made by other lenders including HSBC.

To access the best deals consider reaching out to a financial advisor or mortgage broker. These professionals can offer valuable advice on your financial situation, provide you with different options and help you find the right loan to meet your needs.

It’s important to remember that you don’t have to go through the homebuying process alone. By seeking the help of professionals, assessing your financial situation, which is the most important thing and looking the long-term benefits, if and only if you are confident, it is financially viable to do so, you might be able to overcome your fears and make a considered decision on whether it is the right time for you to buy or not.

Property prices

One of the biggest concerns for homebuyers is the price of the property. After all, buying a home is likely to be the most expensive purchase most of us ever make, and it’s natural to be apprehensive about committing to such a significant investment.

A Nationwide report shows UK house prices have dropped at the fastest rate in 14 years as rising mortgage costs put pressure on the market.

The Nationwide House Price Index showed property values decreased in July, the largest drop since 2009. The median average home is now worth £260,828 – a drop of 0.2% from the month before but down 4.5% on the highest number ever recorded, in August 2022.

In response to the Bank of England’s continued interest rate hikes, some lenders have increased mortgage costs, putting pressure on house prices, although a number of lenders have cut their rates this week which is encouraging.

House prices were 3.5% lower than a year ago, according to Nationwide data for June, but broadly flat compared with the previous month. There were 86,000 house sales in June, which is 15% lower than last year and 10% below pre-pandemic levels.

Robert Gardner, the chief economist at Nationwide, blames the high cost of mortgages for this issue. He said, “As a result, homeownership affordability remains strained for those looking to buy a home and take out a mortgage.”

A useful tip is to be patient. Don’t rush into buying the first property you see, no matter how tempting it may seem. Take the time to view a range of properties and compare their prices. By staying clear-headed and level-headed throughout the buying process, you’ll be able to find a property that suits both your budget and your lifestyle.

Coping with Buyer’s Remorse

Even after finding your dream home, it’s common to feel overwhelmed by a sense of anxiety or unease. This is called “buyer’s remorse”, and it can strike at any point but especially when you work your way through the sales process. There are a few ways to deal with buyer’s remorse.

1. Why did you fall in love?

Think back to when you first decided to buy a home. Recall the feeling that was the turning point that made you realise the house you were viewing, you wanted for your future home.

2. Talk to someone

It’s important to talk to someone who is neutral and objective. Share your concerns and discuss your options. You could seek the advice of your estate agent, financial advisor or a trusted friend.

3. Give it time

It’s natural to feel hesitant about a significant investment such as a home purchase. Allow yourself to settle into your new home and let time work its magic.

4. Get involved

If you still feel apprehensive, get involved in your new community. Take walks, meet your neighbours and explore the surrounding areas. You’ll soon feel right at home.

Making home buying warmer

To discover what is happening in the Cheadle property market, and any exciting homes coming onto the market, contact Joe, Patrick or Maurice today on 0161 428 3663, e-mail sales@mkiea.co.uk or pop into our office on Cheadle High Street. Let us know what your perfect home looks like and what your budget is and let us do the rest.