It is likely that interest and mortgage rates will increase, but there are still plenty of rates currently at an all-time low. The stamp duty holiday may be over, but the housing market is still in an exceedingly positive place with high demand and low interest rates. But is this the perfect time to purchase your first home?
Getting onto the property ladder is the goal for many younger people across the UK, however, saving for a deposit is still one of the biggest hurdles. There is no doubt that the pandemic has created more opportunities for first home buyers. With the vast majority of lenders offering reduced rates to help with the impact of the pandemic, it’s certainly a beneficial time to take advantage.
Saving for a deposit can often be a difficult process for potential first home buyers – especially considering rent and living costs can be high for many. It can seem almost impossible to raise the appropriate funds. Given the difficulties young people face, it comes as no surprise that parents have become the UK’s ninth biggest home buying lender.
Property is expensive and it’s common for people to struggle to save without help, whether that be in the form of a gifted deposit or a ‘help to buy’ scheme. While now is a good time for first-time buyers to buy, it may not be that easy for many. It’s all well and good telling people to ‘take action before it’s too late’, but for some that simply isn’t an option.
Is it really as ‘do or die’ as some people are saying?
Well, the short answer is no. While now is a good time to buy and if you are in the fortunate position of wanting to move and being financially able to – then maybe doing so sooner rather than later is a good idea. For everyone else, however, there are more options.
Nobody can accurately predict what the housing market will do in the long run, but there are non-pandemic induced government schemes available to first-time buyers that will likely be available for the longer term. With the government emphasising intent to help people looking to get on the property ladder, the feeling is one of optimism moving forward.
It’s important not to rush into a move. If you’ve been looking to move and are in a position to do so, then that’s great – but it isn’t quite ‘now or never’. An influx in help-to-buy schemes has more to do with the nature of the market than the pandemic itself and it’s therefore relatively safe to assume that whenever you decide to take that first step onto the ladder, the appropriate help will be available.
If you’d like to discuss the options available to you, contact us today.