Homeowners 'must not bite off more than they can chew'

Posted: 19 Apr 2010 09:58:29 GMT

Homeowners have been advised not to stretch themselves too much financially when it comes to buying a new property.

Timothy Lambert, head of consulting at Ducalian, says: "Whilst a variable mortgage may be cheap now, it will not stay that way forever and buyers must be aware of this before biting off more than they can chew."

He states that now is "not a bad time" to purchase a home but homeowners should prepare themselves for the possibility of the housing market taking a second dip when mortgage interest rates start to rise.

Mr Lambert's comments come as new figures from the National Association of Estate Agents reveal more people are buying and selling homes.

The number of house-hunters registered per branch increased from 258 in February to 274 in March, while sales figures rose from an average of 6.8 per cent to eight per cent.

According to Zoopla.co.uk, confidence in the property market has now reached a two-and-a-half-year high, with 81 per cent of people predicting house prices will rise in the coming six months.

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