Buying a home
It’s happened! The day thousands of people have been dreading is finally here and the Bank of England has increased interest rates for the first time in the last 10 years. The change is only small, increasing from 0.25% to 0.5%, but it’s likely to negatively impact millions of people across the country. Interest rates may increase further in the coming months, but nothing is set in stone just yet.
Back in August I wrote a first time buyer’s guide to choosing a mortgage broker. Within the post I talked about how my friend Chris had used an online mortgage broker called Habito and was really happy with their service. Not only did Habito not charge him a penny, he said they also made the application process effortless, convenient and strees-free.
At the time, I already had a mortgage offer that I’d gotten through my estate agent’s broker, but just weeks after hitting publish, the developers got in touch to say that my flat’s completion date had been pushed back again to mid-October. This was frustrating to hear for two reasons:
1 . I’m desperate to move out of my parents’ house asap
It’s no secret that saving for a deposit is a pain in the arse. No matter how many avocados on toast you give up, it can take years to save the money you need.
As the infographic below from Key Retirement shows, saving for a 16% deposit could take you longer than anticipated. If you’re looking for an average priced house in the North West and you earn the average weekly wage of £502, it could take you 4 years and 7 months. Personally I don’t think that’s too bad… until I look at those buying an average priced house in the South and realise they’re looking at a whopping 11 years and 7 months to save £75,777. That’s longer than a prison sentence for many serious crimes.