First time buyers challenge mortgages

Robbobss · 21 June 2023 at 7:58PM

Hello

what do you guys think first time buyers should do at the moment…

I really need to move out within soon earlier the better.

My heads in a bit of a spin when the best time to buy will be.

My options seem to be

- 95% mortgage between the months of august and December for 2 year fixed for 30 years. Then hope in 2 years the interest has came down a bit and my mortgage will drop few hundred.
(this is affordable in august September November or December for me at 6-7% interest)

- 90% mortgage between January -march where the interest will be unknown possibly at its highest point.

question is in 2 years time will the house prices be at the lowest and I’ll be in negative equity?

I feel like I’m buying at the highest house prices and highest rates. Which seems quite stupid I don’t know?

Ideally at least house price needs to be fairly low and interest high or house price high and interest low. Otherwise I feel like you will fall into a trap of negative equity or over paying a mortgage

However I feel like the talk of BOE interest rates reaching 6% in December makes me feel like the longer I wait the higher the mortgage rate will be if it goes above 7%-8% I can afford it but probably would put it off and wait longer which isn’t ideal.

please help with some good professional advice

FreeFallerSaver · 21 June 2023 at 10:57PM

You'll get people's views on here, but if you want professional advice then you'd be better off engaging the services of a mortgage broker.

Notwithstanding that, it really is anyone's guess what house prices and mortgage rates might be in future. Maybe you've answered your own question in your last paragraph though: if purchasing a house sooner rather than later is something that is important to you, and you are able to afford a mortgage that is offered to you now and which you are reasonably happy with, then perhaps now is the time to do it. However, it's always going to be your call as nobody on these forums will know your personal circumstances. Unfortunately, for the moment, house prices and mortages rates are what they are.