House prices rise as mortgage rates increase: should you buy now?
When is the best time to think about buying your next home? And when is the best time to find a good mortgage deal?
When you are working to a short deadline or a tight budget (or both), it can be quite difficult to work out when the best time is to take the leap of faith when it comes to finding your ideal property and matching it with a suitable finance package.
Because buying a home is probably the biggest investment you’ll make in your life, it pays to do the research to ensure you have the appropriate mortgage to buy the right property for you.
House prices show signs of recovery in January
2025 was a poor year in general for the housing market, with house prices stagnating and even dropping in some regions and locations – this is good news for those trying to find a reasonable bargain, less so for the seller trying to maximise the equity received from the sale.
However, the Nationwide House Price Index for January shows that there are optimistic signs of recovery with house prices beginning to rise once more.
Major lenders increase mortgage rates
Last year saw the major lenders creating a price war for their products, offering low terms for borrowers and competing for your business. However, this week, the news came that Nationwide, Santander and Virgin have announced that they are raising their mortgage rates. In the light of that announcement, the consensus seems to be that other lenders will follow suit.
Why timing matters for buyers right now
Based on this information, it would appear that right now is the best time to find your next home before the market prices you out of a property that you might have your eye on while still finding a mortgage that suits your pocket.
You’ll want to find your perfect home in a great location but, at the same time, to negotiate a good price with the seller and their agent without putting them off for pitching your offer too low. And you’ll want to ensure that you have found the right lender with the best mortgage product that matches your needs and affordability.
Each month, most of the major lenders provide an assessment of the housing market, particularly with respect to the average house price and which way they are going. This should help you to understand whether you are better to wait for an improved bargain (if the house price index is on a downward or static trend) or if you should take the plunge now (if the house price index is rising).
If you are at all unsure or are worried about what mortgage product best suits you and your income and general finances, you might want to make an appointment with a mortgage broker. They will have all of the latest products at their fingertips and a clear picture on the market and how that is going to impact your choices.
Keep your conveyancing costs under control
However you decide to approach your next home purchase, you’ll also want to keep control of the other costs connected with your planned move, including the fees for the legal tasks while ensuring the quality of the conveyancing service is not diminished.
With Best Value Conveyancing, you can be sure that the full legal service is kept moving without sacrificing quality. We provide a quality conveyancing service at a very competitive rate, with fixed-price quotes and transparent standard disbursements. We also offer a no completion, no fee guarantee should your sale or purchase fall through.
Call us now on 0800 0387 007 to start your transaction moving today or get an instant quote.
