Don't get cold feet: how to overcome homebuying jitters
Buying a home is a big decision and a major milestone. It’s easy to get overwhelmed by the prospect of taking on such a huge financial responsibility. If you’re feeling nervous about homebuying, you’re not alone.
Buying a home is a big decision and a major milestone. It’s easy to get overwhelmed by the prospect of taking on such a huge financial responsibility. If you’re feeling nervous about homebuying, you’re not alone. In this blog post, we’ll share some tips on how to overcome those homebuying jitters and take the plunge into homeownership.
Financial worries
One of the most significant concerns for those looking to buy a home is financial worries, especially with the current high interest rates and cost-of-living crisis. It's common for people to feel like they're in over their heads; however, there are a few things you can do to ease your financial concerns and feel more comfortable about making the investment.
New Bank of England data has revealed that approvals for mortgages on houses shot up to 54,700 in June. Economists had predicted a drop to around 49,000.
The number of people applying for remortgage approval increased from 34,100 to 39,100, showing homeowners were trying to do a new deal before interest rates increased any further.
The Bank of England (BOE) has just increased the interest rate again for the fourteenth time consecutively to 5.25%, taking it to a new 15-year high. For the third day running the average two-year fixed residential mortgage rate was 6.85% on Thursday according to data firm Moneyfacts and a drop to 6.36% for the average five-year fixed rate. Yet there are signs that the rates have levelled out. The NatWest has stated that it’s mortgage rates were lowering by 0.2%-0.3%, similar reductions have been made by other lenders including the HSBC.
To access the best deals consider reaching out to a financial advisor or mortgage broker. These professionals can offer valuable advice on your financial situation, provide you with different options and help you find the right loan to meet your needs.
It’s important to remember that you don't have to go through the homebuying process alone. By seeking the help of professionals, assessing your financial situation, and remembering the long-term benefits, you can overcome your financial worries and make a confident decision about buying a home.
Property prices
One of the biggest concerns for homebuyers is the price of the property. After all, buying a home is likely to be the most expensive purchase you ever make, and it's natural to be apprehensive about committing to such a significant investment.
A Nationwide report shows UK house prices have dropped for the first time in 14 years as rising mortgage costs put pressure on the market.
The Nationwide House Price Index showed property values decreased in July, the largest drop since 2009. The median average home is now worth £260,828 – a drop of 0.2% from the month before but down 4.5% on the highest number ever recorded, in August 2022.
In response to the Bank of England's continued interest rate hikes, lenders have increased mortgage costs, putting pressure on house prices.
House prices were 3.5% lower than a year ago, according to Nationwide data for June, but broadly flat compared with the previous month. There were 86,000 house sales in June, which is 15% lower than last year and 10% below pre-pandemic levels.
Robert Gardner, the chief economist at Nationwide, blames the high cost of mortgages for this issue. He said, “As a result, homeownership affordability remains strained for those looking to buy a home and taking out a mortgage.”
A useful tip is to be patient. Don't rush into buying the first property you see, no matter how tempting it may seem. Take the time to view a range of properties and compare their prices. By staying clear-headed and level-headed throughout the buying process, you'll be able to find a property that suits both your budget and your lifestyle.
Coping with Buyer's Remorse
Even after finding your dream home, it’s common to feel overwhelmed by a sense of anxiety or unease. This is called “buyer’s remorse”, and it can strike at any point but especially when you work your way through the sales process. There are a few ways to deal with buyer's remorse.
1. Why did you fall in love?
Think back to when you first decided to buy a home. Recall the feeling that was the turning point that made you realise the house you were viewing, you wanted for your home.
2. Talk to someone
It's important to talk to someone who is neutral and objective. Share your concerns and discuss your options. You could seek the advice of your estate agent, financial advisor a trusted friend.
3. Give it time
It's natural to feel hesitant about a significant investment such as a home purchase. Allow yourself to settle into your new home and let time work its magic.
4. Get involved
If you still feel apprehensive, get involved in your new community. Take walks, meet your neighbours and explore the surrounding areas. You'll soon feel right at home.
Making homebuying warmer
To discover what is happening in the Thanet property market, and any exciting homes coming onto the market, contact our team today at Oakwood homes on 03300 577654.