Latest figures have revealed more bad news, a double whammy - UK house prices have suffered the biggest drop in 25 years as well as the number of mortgages being issued is also at a record low.
Official figures show a month-on-month drop of 2.2% in December and a 16.2% drop from a year earlier.
I don’t have Aberdeen specific information but the average Scottish house price is now said to be at £134,380, which unfortunately to continue the bad news, is a staggering 40% lower than the UK average.
There is a good reason for this, Scotland is traditionally behind the rest of the UK, so when we had the property boom over the last decade it was slower to form and house prices have also fallen at a slower rate than everywhere else.
You can improve your chance of obtaining a mortgage by having a larger deposit, the minimum required at the moment is 15%, if you can put up a 25% or even 30%, the reduced risk will mean lenders will greatly improve their offers and ensure you get a fairly decent rate. Unfortunately it is said that lending is meant to actually reduce further in the first quarter of 2009 rather than improve, even after the government’s investment in the banks and the added pressure. So building a good deposit is the way to go.
Despite the governments best efforts through a stamp duty “holiday” and a cut in VAT, confidence is still lacking which is stopping things getting moving again. If you want to take charge yourself, start saving for a deposit and if you already have a mortgage search around for the best deal to ensure you aren’t paying more than you need to, every penny counts, especially in the current climate.
A mortgage broker is one option, and a highly recommended option at that. There are many mortgage brokers that will search the whole market for free to find the best deal for you so whether you want to see if you can get a mortgage or want to see what is available on the market there is nothing to lose. Mortgage brokers can be country specific and you can find local ones whether for an Aberdeen mortgage or for Durness in the north. Mortgage brokers can also provide expert advice so even if now isn’t a good time they can certainly advice you when to start those applications.
