Thinking of buying or selling in South West Surrey this year? If so you’ll want to know whether now is a good time to get a mortgage deal, put your house on the market, and start your property search. Read on to find out…
The New Year is traditionally a time when the property market in South West Surrey – Farnham, Godalming, Haslemere etc. – starts to recover from the end of year lull. In fact the days between Christmas and New Year see a surge in visits to websites such as Rightmove as homeowners and new buyers use the holiday to start their property search.
This year appears to be no different with local estate agents commenting on the number of calls received by homeowners requesting valuations or expressing interest in properties in the first week of January. The market in South West Surrey is starting to pick up.
Should You Sell / Buy Now Or Wait?
However, property and economic experts expect the housing market to remain flat and growth to slow further this year – Royal Institution of Chartered Surveyors (Rics) predict growth in 2017 of 3%, compared to 6% in 2016.
Brexit and the changes to stamp duty rates continue to have an impact on the market, especially for buy-to-let and luxury homes, with buyers and sellers being more cautious.
Currently South West Surrey is experiencing a bit of a seller’s market. Estate agents in my hometown of Farnham have a shortage of properties at the moment, and many homes are being snapped up within days of coming on the market. Waverley remains a popular and desirable place to live, and homes do not hang around for long.
That said, if you also need to buy in the area you may find your options more limited but, as confirmed earlier, local agents are reporting an increase in requests for valuations as more homeowners prepare to sell.
Mortgage Interest Rates: When Will They Rise?
A good reason to act sooner rather than later is the expected interest rate rise. Currently at an all time low of 0.25% this has resulted in cheap mortgage rates for many, and a great opportunity to get a fixed rate mortgage before any increases.
Without the benefit of a crystal ball it is impossible to say whether interest rates will decline further, but indications are that they are more likely to increase this year. Fixed-rate mortgages are already cheaper than variable so it would seem prudent to get a deal now rather than later.
There are plenty of mortgage deals on the market with an interest rate of under 2%, with the right deposit. Even with just a 5% deposit you could get a rate of under 3%. We have also seen five year fixed rates creep below 2% recently too, again with the right deposit.
Start Your South West Surrey Property Search Today!
If you think 2017 is going to be the year you either buy your first property or move up, down, or sideways on the property ladder, here are your next steps:
Buyers
Mortgages: Get your financial affairs in order to ensure you get the best mortgage deals for your specific circumstances. A conversation with a financial advisor or mortgage broker is a good idea to discuss your situation and see whether there are opportunities to get a better offer.
Set up property alerts: Register with websites such as Rightmove, OnTheMarket and Zoopla and set up alerts for the area, price range, and type of property you are interested in.
Speak to local estate agents: Visit all the local estate agents, preferably in person, and register with them directly. Be clear about your position, they may contact you before properties appear on websites if they think you’re a good fit. Update them regularly about any changes – for example if you receive an offer on your house, or are able to increase your deposit.
Sellers
Finances: If you have a mortgage check to see whether you will incur any early repayment fees if you sell your house. Find out if your mortgage is portable if you want to move with it, or increase your borrowing. Now is a good time to look around at different mortgage products and see whether you qualify. Make sure you’re fully aware of the costs of buying and selling: conveyancing, moving costs, etc. If you are also buying there will be stamp duty to pay on your new property.
Valuations: Invite several estate agents to value your property so you can get fair market appraisal. Check out websites such as Zoopla to find out what properties have sold for in your area. Be realistic.
Prepare your property for viewings: Declutter and tidy, do those DIY jobs that you haven’t got around to doing, give your property a spring clean.
For mortgage advice and assistance – mortgages for first-time buyers, remortgaging etc. – please get in touch. My office is in Farnham but I look after clients across Surrey and West London. Call 01252 759 233 or email info@thesurreymortgagebroker.co.uk
BTW: if you’re a local estate agent in the south west corner of Surrey please let readers know your predictions for Q1 of 2017! Add a comment below…