With mortgage rates at a peak, should first-time buyers hold off and wait for prices to fall? Not necessarily, says Joe Capon of The Mortgage Bubble in his latest Ask the Expert spot
The Question
I’ve been saving to buy my first home for some time now – around five years – and I have saved up £18,000 which I feel is a huge sum of money. I’ve been looking at properties and I am now able to put down a 5% deposit but everyone keeps telling me it’s a bad time to get a mortgage.
What are the prospects at the moment? Why is it so difficult? Should I wait until house prices come down and rates are better?
Joe’s Answer
I wouldn’t say it is a bad time to get a mortgage at the moment, yes interest rates are higher than the exceptionally low interest rates of 1% and 2% we had in 2020. So, naturally, now your mortgage payments will be higher.
It is now more important than ever to get advice on what mortgage options are available to you and how the current mortgage market can work for you because buying your first property could still be an option and it could still be affordable with the right advice.
Waiting for interest rates and property prices to decrease is never a good reason not to buy. You could be waiting a long time for interest rates and prices to come down and then you are missing the opportunity to buy your dream first home.
When it comes to buying your first home the question you should be asking is if it is right for you currently and if you can afford it.
Again, this is where mortgage advice comes in and a mortgage adviser can take you through all the options available to you.
Meet our expert
Introducing Joe Capon of The Mortgage Bubble, who is ready to answer your questions…
Joe Capon has more than 10 years’ experience in the mortgage industry. He set up The Mortgage Bubble in 2021 and it is now a multi-award-winning mortgage firm, which strives to deliver the best mortgage advice to its clients which meets their needs now and also in the future. If you have a question for Joe email our editor and she’ll pass it on to him – kate.saines@emap.com
