The question coming up most often from first-time buyers right now is a straightforward one: should I buy now, or wait and hope rates come down? There is no single right answer, but there is enough concrete information available to make a considered decision rather than guessing. Below is an honest look at what is working in buyers favour at the moment, what is working against them, and what practical steps to take next.
The Case for Buying Now
Property stock is at a 12-year seasonal high. That means more choice, less pressure to rush, and far less risk of losing out in a bidding war. In practical terms, you can take time to view properly, get surveys done thoroughly, and think clearly before making an offer.
Prices nationally are broadly flat, with some areas of southern England recording modest falls. Sellers who listed months ago and have not yet found a buyer are generally more willing to negotiate on price than they would have been in 2021 or 2022. If you make a sensible offer below asking price, many sellers will at least come back to the table rather than dismiss it outright.
Wage growth has been outpacing house price inflation for several consecutive quarters. That means affordability, measured as the ratio of earnings to property prices, has quietly improved even though it may not feel that way because of high monthly mortgage costs.
The Case for Waiting
The cost of borrowing is the main reason buyers are hesitating. Two-year fixed rates are sitting around 5.97% and five-year fixed rates around 6.01% at the time of writing. Compare that to the sub-2% rates available in 2021 and early 2022 and the monthly difference is significant.
To make that concrete: on a repayment mortgage of 200,000 over 25 years, the approximate monthly payment at 2% is around 848. At 6%, the same mortgage costs roughly 1,289 per month. That is over 440 more every month, or more than 5,280 extra per year. That gap has a real effect on what you can borrow and how comfortably you can manage the payments.
Lenders are also tightening up on high loan-to-value (LTV) products. LTV refers to the size of your mortgage as a proportion of the property value. If you have a 5% deposit, fewer lenders are willing to offer you a deal than was the case two years ago, and the rates on those deals are higher than for buyers with 10% or more saved.
There is also the question of a potential Bank of England base rate rise expected by some analysts in November 2026. If that materialises, fixed mortgage rates could climb further before they fall back.
What About the First Homes Scheme
Some buyers are holding off specifically to see whether the government's First Home Scheme is expanded or updated. The scheme offers eligible first-time buyers a discount of at least 30% on the open market value of a new-build home, subject to local eligibility criteria and price caps set by councils.
It is a genuine benefit if you qualify and if the right property comes up in your area. The problem is that availability is patchy and depends heavily on your local authority and what developers are building nearby. Waiting indefinitely for a scheme that may or may not produce a suitable property in your area is a risky strategy. Speak to our team about what is currently available locally, and ask your solicitor about the legal specifics before relying on it as a plan.
Total Cost of Ownership: Think Beyond the Purchase Price
Whether you buy now or later, make sure you account for costs beyond the mortgage payment. These include:
- Stamp duty (first-time buyers currently benefit from relief up to certain thresholds, but check current rates as these change)
- Solicitor and conveyancing fees, typically between 1,500 and 3,000
- Survey costs, which vary depending on the type of survey you choose
- Buildings and contents insurance from day one
- Service charges and ground rent if you are buying a leasehold property
- Ongoing maintenance, which many first-time buyers underestimate
A property that looks affordable at the purchase price can become a stretch once all of these are factored in. Build a realistic budget before you start viewing.
Practical First Steps
Whichever direction you lean, these steps will put you in a stronger position.
Get a mortgage in principle. This is a written indication from a lender of how much they are willing to lend you, based on a soft credit check. It costs nothing, does not commit you to anything, and shows sellers you are a serious buyer.
Speak to a fee-free broker. A whole-of-market broker can search deals across multiple lenders rather than just one. Fee-free brokers are paid by the lender, not by you. They can also advise on which lenders are currently active at higher LTV ratios if your deposit is small.
Understand your total monthly outgoings. Add up your mortgage payment, any service charges, insurance, and a sensible monthly maintenance allowance. Make sure that total is manageable even if your circumstances change slightly.
Timing the market perfectly is not possible. What is possible is making a well-informed decision with the information available now. If you want to talk through your specific situation, get in touch with our team and we can point you in the right direction.
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