When is the right time to buy your first home? 

There is a lot to think about when purchasing your first home and, with a changing housing market, it can be hard to know if it’s the right time to buy. Changes to Stamp Duty in England are worth tuning into and will no doubt be a contributing factor if you’re on the cusp of deciding. Getting a foot on the ladder before rates revert could save you thousands, but competition for properties could be fierce. Here are a few other things to consider. 

House prices and mortgage rates  

It is widely predicted that prices will increase in 2025 but at slower pace than before. Meanwhile, the August and November reductions to Bank Rate have prompted some mortgage rates to reduce in recent months. Rates may tend to keep dropping modestly but experts believe that, in the long run, the ‘new normal’ mortgage rate will be higher than the levels seen in the last decade. 

Current FTB sentiment 

The fall in mortgage rates in the year to September 2024 prompted monthly repayments to go down by £97 for the average FTB¹. As a result of this saving, new homeowners are willing to spend £3,400 more on a property than they were in 2023. 

What is your current situation? 

The right time to buy will be different for everyone. Buying your first property is likely to be the biggest purchase you have ever made, so it’s important to seek professional advice. We can help you make an informed decision, so you feel empowered to take your first step onto the property ladder this year. 

¹Zoopla, 2024 

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments. Financial protection policies typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.