Gemma Godfrey, an expert in personal finance, responds to a question posed by a significant number of individuals seeking to climb the housing ladder.
First-time buyers throughout the United Kingdom are faced with a crucial question: should we buy now or wait for the market to cool?
The Office of National Statistics reported that the average house price increase in the United Kingdom jumped to 12,4 percent last month, a substantial increase from 9,7 percent.
Saving enough money to purchase a first home is a significant accomplishment, and waiting for a “better time to buy” could be risky for three reasons.
First, there is no assurance that home prices will decline, especially in highly desirable areas where there are more buyers than sellers.
A mortgage could become more expensive if interest rates continue to rise, especially if you were considering a fixed-rate mortgage that could be fixed at a lower rate today.
Thirdly, during difficult economic times, banks have made it more difficult to qualify for a mortgage, so there is a chance that it will be more difficult to qualify for mortgage offers on the market today.
Buying a home that you will reside in for many years can be an emotional decision.
It can be time-consuming to find a suitable item, and once you do, the risk of losing it to another buyer may outweigh the benefit of waiting for a price reduction.
