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The number of Brits planning to move home in the next six months fell from 8% to 6% in the 48 hours that followed this month's Bank of England base rate rise, according to research from AA Financial Services, suggesting many are reconsidering moving in an increasing mortgage rate environment.
In contrast, figures for July show high property confidence, with a rise in the number of people planning to move home in the next three months from 3% in April to 5% last month, while the six-month figure sat unchanged from previous months at 8%. Meanwhile, 22% of respondents said they were considering moving in the next two years, with the average planned spend on a new home sitting at £320,736, up from £312,702 in April.
Even renters were feeling more confident, with 34% planning to buy their next home, up from 28% in the spring. It's too early to tell whether this figure holds up following the base rate rise, but if people are still interested, it's now more important than before that (future) borrowers find the most competitive mortgage deal possible.
"After years of record low interest rates, last week's rise – and indications that more is yet to come – mean that the cost of buying a home is going to get more expensive," David Searle, managing director at AA Financial Services, commented. "Given many people are moving home to save money, release equity or make their money go a bit further, it seems that, for some, the reality of living with rate rises may well temper their plans to move in the short term."
Regionally speaking, people in London and the East Midlands seem the keenest to move in the near term, both recording 7% in July. Over the next two years, Londoners were also still the keenest, but now tied at 29% with those in Wales. People in the North East, on the other hand, were the most content with their current arrangement, having the least percentage of people considering moving in both the three months after July as well as in the next two years.
Even if you're not planning a move, you'll want to make sure you have a competitive mortgage deal – consider remortgaging now if your current deal is due to end soon. Especially since most seem to be looking to save money by moving at the moment, you don't want to end up stuck with a high-rate deal and be no better or perhaps even worse off.
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