Moving house to lower mortgage payments is rising priority
More than half of people considering moving home say their main reason for doing so is to lower their mortgage payments, a survey by the Building Societies Association (BSA) revealed
Moving home to save money has grown in prominence since the last time the trade body conducted its Property Tracker survey rising from 37 per cent of respondents in December to 51 per cent in the latest report.
The BSA noted that while it was difficult to define the rationale of survey respondents it pointed to people increasingly wanting to moving out of cities.
The research also found that around 73 per cent of people said getting more private outdoor space was a priority, whilst 62 per cent of people said that moving away from built up areas to embrace nature was their priority. The BSA said that this was a substantial increase on prior surveys.
It added that lower mortgage rates may also be a factor as those who are moving would want to ensure that they got the best deal. Bank of England figures show that a two-year fixed 75 per cent loan to value mortgage priced at 1.86 per cent in December had fallen to 1.46 per cent in May.
The research also showed that raising a deposit was the biggest barrier to purchasing property, with 59 per cent citing it as their biggest concern.
Lack of job security declined as a concern, with around 45 per cent citing it as a concern, down from 68 per cent in September.
BSA mortgage and housing policy head Paul Broadhead said: “Amongst all the positive signs in the housing market, it’s important to note that almost half of the respondents have concerns around their job security.
“Whilst this is a declining trend, it remains clear that there are many people for whom the pandemic continues to have a negative financial impact and it’s important both for lenders and government to ensure that appropriate safety nets are available to give households the support they need, when they need it,” he added.
Consequently, the BSA is reiterating its call on the government to reduce waiting times to apply for support for mortgage interest so homeowners can get quick access to extra safety net.
The research also found that confidence in the housing market was strong, with a third thinking that it was a good time to buy although this is down from 37 per cent in March.
The BSA attributed this to Stamp Duty holiday deadline in June and increase in house prices.
Around half of respondents expected prices to increase in the next 12 months, up from a quarter in December.