With the first 2 months of the decade now under our belt (where did that go…), it is worth reflecting on what has been an extremely busy start to the year and will house prices start to rise?

We work quite closely with a few Estate Agents, and they are reporting extraordinary figures. Some, the best start to a year they have seen in 10 years! As Agents are at the sharp end of the market, it is worth taking note of that, as if activity at that level continues, I would expect house prices start to rise. Have a look at this FT article.

In part, that is to be expected with such as decisive election victory after 3 of the most chaotic years I have certainly ever experienced (and you need to go a long way back in the history books to find a comparable time!). While I am a very strong believer that your home is not an investment, so you should only buy with the thought of it being your home. That said, if you are looking for a deal, or looking to invest, I strongly suspect that the longer you wait, the more you will end up paying.

Rate Corner

Very large drop in rates last week. That is due to the market (over) reaction to the corona virus. Something to keep a very close eye on but suspect this will wash out as the virus does.

Last week we saw:
3 Month Sterling Libor – down 0.079% to 0.672%
2 Year SWAP rates – down 0.115% to 0.599%
5 Year SWAP rates – down 0.115% to 0.598%

These rates are relevant as most Banks buy in money based on the above markets. Libor often funds Variable rates and SWAP rates often fund Fixed Rates. Lenders will then add a margin to the above to reflect their risk and profit objectives.

Best Rates:

2 Year Variable from 1.24%
2 Year Fixed Rates from 1.14%
5 Year Fixed Rates from 1.41%
BTL Rates from 1.19%

The actual rate you will be offered will be dependent on your personal circumstance and deposit level. Please speak to one of our advisers so that they can guide you through this process
Source: Twenty7Tec Feb 2020

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