It’s been tough for first-time buyers of late. And it often is in general, if we’re being honest. After all, a first-time buyer – by their very nature – typically has no property wealth in the form of accrued equity, and they’re often trying to enter the property market with a deposit that just about qualifies them for a house purchase.
Add to that escalating mortgage rates throughout 2023 and it’s easy to see how homeownership became that little bit further out of reach for those wanting to get their foot on the property ladder last year.
But now, it seems as though things are changing.
The great big first-time buyer mortgage flurry
We’ve covered the current mortgage rate reversal quite extensively over recent weeks. But we haven’t explicitly talked about what this means for first-time buyers – so let’s cover it here.
As a Maidenhead mortgage broker that specialises in first time buyer mortgages, we’re continually monitoring the mortgage market. As it stands, there hasn’t been this many first-time buyer mortgage deals on the market since autumn 2022 – and this is great news.
Those who were hoping to apply for a mortgage in 2024 but felt that they were getting outpriced by unaffordable rates can now breathe a sigh of relief.
But it’s important that they don’t get distracted.
Beware of chasing rates
From waking up to find how rates had increased (again) in 2023, we’re now waking up to discover which major lender is the next to offer sub-4 per cent fixed rate mortgages.
Now, whilst these rates may not be applicable to first-time buyers – especially those with just a 10 per cent deposit – it’s easy to see how a prospective mortgage applicant might get excited at the idea of falling rates.
However, chasing – and then applying for – the cheapest rate might not necessarily be a good strategy. In fact, if you’re a first-time buyer looking for the best UK mortgage deals right now, our view is that you should be speaking with a mortgage broker.
Firstly, they’re trained in establishing the best deals so you don’t have to spend your time doing it. Also, through an initial consultation, they will know which deals are open to you and which aren’t. The result of which means that you won’t waste time not only chasing mortgage deals, but chasing mortgage deals that aren’t even relevant.
If you’ve been waiting this long to get on the property ladder, then it’s worth doing it right. Now is the time and in our opinion, it is time to go full steam ahead – but do it with the support of a mortgage broker that knows what they’re doing.
Ready to embark on homeownership? Looking to get the best first-time buyer mortgage deal? If so, get in touch with our Maidenhead mortgage brokerage on 01628 560820 or by emailing enquiries@altonmortgages.co.uk.