Buying your first home is a major financial commitment, and it’s natural to wonder when the right time is to take the leap. Here’s a look at what you need to consider when deciding if now is the time to make your move.

Will House Prices Come Down?
Over the past year, house prices have risen due to limited supply, and most experts predict prices will continue to climb, although at a slower pace. Interestingly, first-time buyers (FTBs) are now prepared to spend an average of £3,400 more than they were a year ago. Outside of London, a three-bedroom house remains the most popular choice for a first home.

While the scheme provided some assistance, the numbers suggest it didn’t meet the ambitious goals set for boosting first-time homeownership.

The Cost of Borrowing
Mortgage rates are expected to decrease in the coming years as the Bank Rate reduces. As of September 2024, average mortgage rates have dropped to 4.5% from 5.7% in 2023 (based on a five-year fixed rate mortgage with 75% loan-to-value). Experts predict that the “new normal” mortgage rate will likely range between 3.5% and 4.5%.

These changes have made mortgages more affordable, with monthly repayments for a typical FTB decreasing from £1,076 to £979. However, as many first-time buyers are opting for higher-priced homes, they still require a higher income than a year ago to meet their property goals.

Know What You Want
There’s no perfect time to buy, but timing it right based on your needs is key. It’s important to know what you’re looking for in a home—whether it’s the number of bedrooms, garden space, or proximity to amenities. You should also work with a qualified financial adviser to determine what you can afford, based on your income and savings. This will help you make a more informed decision when the right property comes along.

We’re Here to Help
The home-buying process can feel overwhelming, especially for first-time buyers. That’s where we come in. Our team is here to provide you with unbiased advice and guide you through every step, helping you decide whether now is the right time for you to buy your first home.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Sources: Zoopla, 2024 Lloyds, 2024