Rugby is more than the birthplace of the popular sport, or the school that gave it its name. Situated just 30 miles from Birmingham, this market town has many attractive features that may encourage people to move there. The question is whether current trends and the shape of the market mean that now is a good time to do so.
For the first time in years, the Bank of England is making significant increases to interest rates, which is having a knock-on effect on the housing market. Rates may be as high as 4.5% by the end of 2023. The Bank of England has also warned that we are likely to enter a recession. These two factors together are likely to cause property sales to slow down as well as affecting prices, which may make you reluctant to buy.
Mortgage rates rose overall in 2022, from 2.1% to 6.21% between January and November for a 5-year fixed rate mortgage. In the October to November period, however, there was a 0.22% drop. If current trends continue, it seems likely that house prices are going to drop in 2023 and perhaps even 2024, but your monthly interest payments on your mortgage are likely to rise. You may be tempted to wait to buy in the hope that it will cost you less overall, but buying now does mean you can lock in your rates before they start increasing.
Buying Versus Rental
One important consideration when deciding whether to purchase is whether renting is a viable alternative. If you want to move to Rugby but are not ready to buy, then you may have to rent a property. Rental rates are currently very high and likely to grow even further. The monthly outgoings represented by rent can make it very hard to raise a deposit to try and buy a house. You could end up spending years paying for your rented property without moving any closer to that first step on the home owning ladder.
It is not just the deposit and the monthly mortgage payments. You also need to consider other moving related costs, such as legal fees or hiring a removal company. This means choosing between different conveyancing solicitors Rugby. Reputable firms, such as Sam Conveyancing, can support you at every stage of the conveyancing process.
Of course, there are a range of personal factors that affect your choice of home, and these are unique to everyone. It is not just about your personal finances but also your family situation (marriage, divorce, children, elderly parents etc.), the distance you need to commute and the availability of local amenities. There is an element of personal taste as well, what kind of home do you want to live in and where do you want it to be? You need to weigh all the relevant factors before you can decide whether to buy.
Owning your own home is a big step that comes with a sense of security, but also a lot of responsibilities. Deciding where and when to buy, assuming it is financially viable to you, is a big decision. Consider every factor carefully before you make up your mind, including the current falling house prices and increasing mortgage rates.