Is it the best time, to buy my first house? as the intrest rates might go up in feb?

Answer 1

this time of year is good, because house prices reflect that less people are prepared to buy near Xmas. Plus most divorces take place in January and that's when a lot more people have to start looking for a new house and the prices go up due to demand.

Answer 2

Interest rates have just gone up for the second time since August. An its pretty certain they will go up again. If you are on a set budget, then go for a fixed rate mortgage to make sure you won't get caught out. You pay more for these, but at least you know for 1,2,3, 5 years, you dont have to worry about rate changes. The way things are going, there are going to be a lot of people having to sell because they cannot afford to pay the extra cash that the rate rises require. House prices should steady up as more properties come on the market/ there are more repossesions. Rates will continue to rise until the market slows down. Whatever you do, make sure you can afford either a fixed rate or at least an extra couple of % on what the rate is now. I still remember when mortgage rates were over 10%. If you go for fixed rate, only fix it for as long as you intend to stay in the house or make sure its either transferrable or no penalties for early repayment.

Answer 3

I was reading today that house prices are still going up and at the fastest rate since 2001 - http://www.propertyinvestor-news.co.uk/latest-news/uk-property-prices-still-going-up/news.aspx?item=36. Apparently inflation is now under control so their might not be an interest rate rise in February and the latest interest rate rises aren't affecting house prices. It's a tough one because you could wait and it'll cost you even more to get on the ladder. I think if you've the money jump in but pick an area that will show growth.

Answer 4

I used to work for a firm of property consultants, so I know a little bit about this subject.

Ask yourself this. If property prices are rising faster than ever, and you expect a rise in interest rates in Feb', when is the best time to buy?

A / When the price is lower and gain from a lower overall mortgage during your entire term!

OR

B / When the price is higher and the interest rates have risen, leading to higher overall payments, during your entire term!

Do the math. Pay a lower amount at day one and gain for the entire term or pay a Larger amount at a higher rate and pay more for the entire term!

Answer 5

You should wait. The best market for homes is in the late winter when the best selection of homes is available. Rates will not be going up in February...there is no reason for an increase. Rates for mortgages are at fantastic levels. When you negotiate for a mortgage, simply get them to lower posted rate by a minimum of 1%. You have to ask: "do they want my business and the tens of thousands they stand to make?" If they don't, go somewhere else or hire a mortgage broker. Now is not the best time...people don't want to be selling at Christmas, nor do people buy at this time of year as they need the funds for Christmas.

Answer 6

Hello,

Anytime is a good time to buy a home. Over the long term, people who own homes build much greater wealth than someone that rents. But now is a very good time to buy, as interest rates are still low, and sellers are lowering their prices and offering incentives.

I am a realtor in New Jersey. If you have any more questions, e-mail me at [e-mail]

Answer 7

It depends on how long you're intending to keep the home. If you're intending to move/emigrate in the short term, then you might want to consider renting to reduce the risk of being in negative equity at the time you want to move on/emigrate. If you're planning to stay long term, then the negative equity threat is much less - as you wouldn't be affected.

The biggest issue in terms of interest rates is whether you can afford increased repayments. If not, then you need to look for a fixed rate mortgage.

Answer 8

Here is some good advice. If you find a home today that you love and it is available at reasonable price...BUY IT!

Unlike buying stocks or commodities where you are looking for an immediate return on your investment, a home is for your family to enjoy. Don't lose sleep over how much it will appreciate. Purchasing a home is always a smart decision.

Answer 9

If you can afford it do it. Roughly-speaking, on £100k mortgage you are looking at £15 increase per month for every 0.25%. Just make sure you don't mortgage yourself up to your limit.

Answer 10

yes why not, but you must take it into consideration that rates might go up, if you waited until they came down, you still never know when they would go up again after you bought.