The property market will be “torn two ways” in the next few months, David Whittaker, managing director of buy-to-let broker Mortgages for Business, finds.
Commenting on the 15-year low British inflation has hit, Whittaker said “no area of the economy or personal finances will be unaffected.”
The property market in particular will be pulled in opposite directions by the very low mortgage rates on one hand and by the political uncertainty ahead of the general election in May on the other.
“For that reason, we can only hope that housing policy and the property market don’t become political footballs in the next few months,” Whittaker stressed.
“Caution isn’t out of the question – we still recommend our clients to fix their mortgage payments now while the going is good. But even for fixed-rate mortgages, there are already some incredibly well-priced deals on the market – and this is only likely to improve further,” he said.
Bank of England is not likely to raise the base rate before the second or third quarter of 2016, according to Whittaker.
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