One in four homeowners looking to move during the next six months are planning to do so as a result of rate reductions, according to latest findings from the Nottingham Building Society.
However, brokers from the firm warn that cuts may have ended, with only 16% of those questioned expecting further reductions. 23% forecasted slight increases and 56% expected rates to stay put.
Research from The Nottingham indicates that 20% of homeowners are considering a move over the next six months. Tumbling rates have led many to gain more equity and be able to look at more expensive properties. This said, 17% of potential movers said that they are looking to purchase a less expensive home and use the additional money for other means. 11% of those looking to move said that they needed to buy a cheaper home in order for their release cash to subsidise their living costs.
On the other hand, 15% said they wanted to move to a more expensive home due to the fact they have had a pay rise.
In terms of the mortgages that would-be movers are looking to take out, 50% said that they wanted to choose a fixed-rate deal. Just 8% are opting for a standard rate variable mortgage.
Ian Gibbons, Senior Mortgage Broking Manager at the Nottingham, commented that it is, ‘traditional home buying season and our research shows that many homeowners are thinking about it. The key reason is that mortgage rates have fallen and are extremely competitive at the moment which makes finding a good deal possible if you search the whole market.’ He continued by saying that, ‘in the first three months of this year, we saw a 49% increase in mortgage enquiries compared to the fourth quarter of last year.’
Low rates prompting many to move
By region, the research found that 27% of people in the South East are looking to move house in the next six months, which was the highest of any region. This was closely followed by 26% in both the South West and Wales.
Regionally, the percentage of homeowners looking to move were:
|Percentage of homeowners thinking of moving over the next six months
|Yorkshire and Humberside