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Bespoke Mortgage Advice

Maidwell Group

What does the current housing market mean for first-time buyers?

Monday 8th August 2022

With the combination of record-breaking house prices and increased uncertainty in the current economic climate, many first-time buyers may be questioning whether now is the right time to get onto the housing ladder.

Some buyers may be putting their search on hold and waiting for prices to drop which may or may not happen over the next year or so. Experts state that there have only been 31 months in the last 20 years where house prices have fallen. These months were all between 2008 and 2012.

In general, property prices tend to rise over time, so your investment today will likely grow in value and you will see a profit in the future. If the property is to be used as your home for quite some time and be a long term investment then the short term effects will have little impact.

If you have the deposit and think your household income will be steady or rise over the next 2 to 3 years, then it might be better to bite the bullet.

Some buyers may also be holding off as they wait for interest rates to drop, however it’s unrealistic to expect a fall back to the low mortgage rates we have seen in the last few years. Based on historic data and with current inflation levels at 9.4% expected to rise to 13% by year end, holding off may result in higher monthly repayments on your mortgage.


Below is a table taken from Trading Economics depicting the Base Rate fluctuation over the last 25 years.

Average Interest rate over the last 25 years.png

Even with the recent increases, borrowing costs are still low compared to historic standards. Remember, you’re not stuck with your mortgage rate forever. If rates drop significantly, you can always refinance later to cut costs.

This is why it’s crucial to get the best advice to make your purchase successful and the process as easy as possible. Speaking to a mortgage broker ahead of time will enable you to plan accordingly. They can offer advice to make your investment as successful as possible as well as give you guidance on market trends.

If you are exploring getting onto the housing ladder, looking to remortgage or would like to have a chat about your finances, please do not hesitate to get in touch with us. You can request a mortgage consultation with a member of our team here.

Want to know more? 


+971 585194391 

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