As of 23rd March 2023, the Bank of England’s interest rate rose by 0.25% to 4.25%. When the base rate increases, other interest rates on mortgage, loans, and savings account also get influenced. The inflation rate in England is around 10%. The high-interest rate is the best available tool to control inflation. Stable and low inflation is crucial to preserve the value of fiat currency, economic growth and financial planning. With rising interest rates, the mortgage becomes more expensive as the applicant gets less disbursed amount and pays higher interest. In the current scenario, the market is going to be more reliant on cash buying in the coming months as cash-buying companies are less susceptible to interest fluctuations.
Different tools used
Click here to find a competent, legitimate cash-buying property and furnish all relevant documents of the property to facilitate the proceeding. As other potential buyers in the market, they can query about the property and provide them with an accurate picture of the premises and the expected price of it. Different tools such as Google map, HM Land Registry and advanced property valuation calculator account for age, area and other factors in determining the current valuation of the explicit property.
Variables influence property value
They need to know the structural condition of the building, the encroachment by tenants, and the width of the road. All these variables influence the value of the property. For proper valuation, you must provide true data to the company, state if the property is unmortgageable, structural condition, and if leased. If facts are otherwise, the company is entitled to lower the offer price before the contract of exchange. The property could be unmortgageable due to several reasons the previous owner already mortgaged it, or it does not fulfil the necessary criteria for loan approval.
The mortgage lender may be unwilling to consider the property as collateral due to legal factors. If there is a structural damage certificate from a qualified structural engineer, state issues could be repaired before putting the property for sale. Discuss all the issues with the cash-buying company as it saves lots of hassle and time in due course.
More tilted towards cash buying
When the interest rate is high, mortgage buyers are more vigilant and less aggressive in bidding as the ease of borrowing is less. Predictably the market is more tilted towards cash buying, with inflation. The Halifax housing index is also climbing by 10.8% annually. Data from the Land Registry office and National Statistics shows the percentage of cash buying is strongest. In rural and coastal areas, most of the property transactions are mortgage free, while in London, with the highest property price in the UK, cash buying is restricted to 15% lowest in the country. In areas where 1/3rd of the population is over the age of sixty, more than half of the property transactions are mortgage free.
The process
Click here to find a suitable sale house fast company. After the preliminary conversation with you, they will consult with the underwriter to evaluate and assess the property value. The negotiator appointed by the company will share all the information with you, so disclose every fact as it could augment the property value.
