With soaring mortgage rates there will naturally be an impact to the housing market, and many have been suggesting the falling pound and subsequent mortgage withdrawal might lead to a housing market crash. A rise in mortgage interest rates could prove disastrous for the property market as people simply won’t be able to afford their mortgage payments. This could cause a wave of properties to come to market just when demand is drying up. House prices would fall if this occurs.
But, we are still suffering a severe lack of stock in the market and an ever increasing population of renters wanting to buy, means house prices are unlikely to see a severe crash. Furthermore, the stamp duty cut will also help keep demand in the market. So, if you are looking to sell your home, don’t let this mortgage pulling put you off. It is unlikely to cause any substantial market crash, particularly when looking at a long term scale. Property, particularly in the Dorset area, is always in high demand from consumers in the property market.