Help to Buy rates will fall in time for January sales

There are now three words on everyone’s lips when it comes to mortgages; help, to and buy. This year continues to bring exciting revelations from the market, as the second phase of the initiative was recently brought forward by three months. All the major lenders have now announced their involvement in the Help to Buy scheme and outlined their individual terms and criteria. It is my view, however, that we will have to wait until the early part of next year to see real competition among lenders flourishing in the market. I have predicted that rates will fall significantly as we go into the New Year and as January has always traditionally been a very busy time for the property market, we can expect a real flurry of activity this time next year as lenders start to compete with one another. As a result of this competition which we have anticipated in the market, we are strongly urging clients to hold off on jumping in feet first into the scheme for the time being. Borrowers who wait until Help to Buy has become more established are likely to benefit from cheaper market rates which will probably bottom out as we go into the Spring. In our view, it would be unwise to react to all the media hype by taking the first available deal, as we think that savvy shoppers will see mortgages rates drop just in time for the January high street sales. We are also concerned that there is still a lot of misunderstanding from prospective borrowers on what the scheme is and how it actually works. If you have any questions whatsoever then pick up the phone to one of our consultants who will be more than able to answer any queries you may have.

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