There is a strong sense of fear and concern amongst residents of Greater Manchester as the state of the UK property market worsens. Homeowners and first-time buyers are being forced to make difficult and often 'life changing' decisions when it comes to their mortgage and what they may or may not be able to afford in the coming months.
Ever since the government's mini budget last Friday (September 23) mortgage lenders have been wiping deals off the market due to fears that the Bank of England may raise interest rates to as high as 6 percent. On Friday 3,961 mortgage products were available but just 2,340 remained on sale on Thursday (September 29) - showing a record loss of 1,621 deals in less than a week, reports PA news agency.
Worry is now mounting amongst homeowners as with higher interest rates come higher mortgage repayments. With the market predicting a rate beyond 6 percent in the first half of 2023, owning a home could become even more unaffordable amid the existing cost of living crisis.
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Homeowners and first-time buyers in our region are now understandably feeling the pressure of the looming property market meltdown. Residents across Greater Manchester have now shared their biggest concerns and worries for the future.
'All the time it's getting more expensive - and I'm nowhere near a new deal'
Aga Pietrzak, 43, lives in a one-bedroom apartment in Albion Works in Ancoats with her two young children.
Her fixed rate deal came to end last year, but she's currently unable to get a new mortgage because work to replace cladding on her building is ongoing, meaning she's unable to get the required safety certificate.
And all the while her mortgage is getting more and more expensive. "This time last year we were paying around £400 a month, but now it's 25 percent more every month," she said.
"When I first started looking for a new deal it was about 3 percent, then the market changed and it was 3.4 percent, then 3.7 percent, now it's 4 percent and now they're predicting it's going to to 6 percent. I'm still nowhere near securing a new deal through no fault of my own and all the time it's getting more and more expensive.
"But we're quite lucky because we don't have a big mortgage. There are people here in the same situation whose mortgages are £1,000 a month."
'I'm worried if I buy now, prices will plummet and I'll be screwed'
First-time buyer Andrew, 30, from Sale was paying rent to live with his mum before taking the plunge to look at buying his own place earlier this year.
He now has a mortgage in principle with Nationwide, but the recent news has put him in a tough predicament wondering whether he should - or can even afford to - go ahead.
“It's so irritating knowing that interest rates have risen and now I feel super pressured to make a life changing decision quickly - or I'll be priced out of the market," Andrew told the Manchester Evening News .
"I also feel like these changes are hitting the first time buyers hardest because there's already such a high barrier to entry into owning a house with the prices at record highs, so first time buyers don't already have equity.
“I'm concerned that I'm overextending with my potential purchase and that I'm going to end up losing my house in a few years. I’m worried about keeping up with mortgage payments and that if I buy now, houses will plummet within the next year and I'll be screwed."
The current mortgage crisis has even led Andrew into considering pulling the plug on his house search and instead moving aboard.
“I'm definitely thinking of holding off buying, but then when is this situation going to rectify itself and how much dead rental money would I have spent by then?," he questioned.
"Honestly I'm not dismissing the opportunity to move abroad if it arises until this is all sorted out. I'm seeking advice and just trying to make an informed decision."
'I'm coming off a five-year term and I'm terrified - I can't even get through to my lender'
Scott Mitchell, who owns a home in Salford, is just coming towards the end of his five-year fixed rate mortgage - and is fearful of what the near future holds.
The 38-year-old is currently paying £430 a month for his mortgage and has 'no idea' what his new rates could be as he 'can't get through' to speak to his lender.
“I’ve been a homeowner for nine years but I have never been worried about paying my mortgage until now," Scott said.
"I’m coming off a five year fixed term mortgage next month and I’m genuinely terrified. I'm very concerned how much my outgoings will increase by in 2023.
“My main worry is how much my day to day life will be compromised. I worry things could get even worse for normal working people like me.
“I’m in a holding pattern in terms of where I’m going but I will no doubt be seeking advice very soon.”
'I told my husband not to worry when he was freaking out - now I'm extremely nervous'
Mum-of-three Sofia from north Manchester says she is extremely concerned about her mortgage repayments going up.
Things have been especially tough for her family in recent years as one of her daughters, who has just started college, was diagnosed with cancer.
“I’m on a fixed two-year rate, due to finish in March 2023, but my plan was to start the process in December," Sofia said.
"A few months ago my husband was freaking out but I told him not to worry. At first I was not very concerned but when I read that banks were pulling out their products I became extremely nervous.
"My main concern is how much my monthly payments will go up. Because I have good equity in the house, I’m taking money out to consolidate some debt I accumulated during my daughter’s cancer treatment, so I was counting on my payments increasing but not with the added higher interest rate.
"I’m very concerned. I have arranged an appointment with my mortgage advisor next and hopefully we can find something affordable. She’s been in remission for 1 year now, and started college this month."
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