House prices rise in October but how will this affect first time buyers?

Monday 6 November, 2023

Information from the Nationwide Building Society show that house prices increased 0.9% month on month between September and October 2023.  The last time there was a bigger increase was in March 2022.  However, year-on-year average house prices were down 3.3%, compared to an annual fall of 5.3% in September.

Why have house prices risen recently?

Nationwide’s chief economist Robert Gardner said that this recent rise: ‘most likely reflects the fact that the supply of properties on the market is constrained.’  On a positive note, he believed there is currently not much sign of forced selling as employment conditions are good and households in arrears are at relatively low levels.

Rising house prices makes it harder for first time buyers to purchase their home

Amy Kadir, mortgage broker St Albans, Hertfordshire said:

‘First time buyers are finding it increasingly difficult to purchase their first home and get on the housing ladder, given the current economic circumstances and especially when house prices increase as they have done this month.  Due to the difficult financial conditions many mortgage lenders are now requiring higher deposits from first time buyers.  If you are a first-time buyer or considering purchasing your first property in the next few years, it is worth getting mortgage advice now, so you know what you need to do before purchasing your first home.  Remember to check your credit rating, review your monthly and annual income and expenses so you know what type of property you can afford and how much deposit you can afford to put down on a property.  Make sure you are also aware of other moving costs such as stamp duty, solicitor and valuation fees and moving costs.  Our mortgage advisors can get you started and help you plan what you need to do to be able to start house or flat hunting.  In terms of mortgages, we can explain the differences in the types of mortgage products and mortgage rates so we find the right mortgage for your circumstances.

Why a first-time buyer should use a mortgage broker

Amy Kadir mortgage broker St Albans continued:

‘Buying your first home is stressful but if you get local mortgage advice early your mortgage broker can assist you with any issues and save you time on your property purchase.  Once we have reviewed mortgage products with you and you have chosen the product you require, we can link up to check mortgage lenders products and rates so you can quickly find the best mortgage product for you.  We can also assist you to complete your mortgage application, and we can act as a go between for you and the mortgage lender by calling them and checking on the progress of your application.  Once your mortgage application has been approved, we can liaise with your solicitor, so your mortgage completes on time.

Why use Lonsdale Mortgages?

Our Lonsdale mortgage broking team offer excellent client service.  We are rated 5* on Google for our mortgage and protection advice.  If you want to find out more read our reviews here.   Lonsdale Mortgages is part of Lonsdale Services which is a Top 100 FT Adviser featured in the FT Adviser Top 100 list for 2023.  Lonsdale Services has been offering financial and mortgage advice for over twenty years.  We have offices in St Albans, Barnet, Chippenham, Ringwood, Leeds, Ware, Stafford, Harpenden, Wimbledon.

In Summary…

If you are considering purchasing your first home, call our mortgage broking team to find out what you need to do and get mortgage and protection advice.

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up the mortgage repayments.  The information contained in within this article is for guidance only and does not constitute advice which should be sought before taking any action or inaction. The Financial Conduct Authority do not regulate some forms of buy to let mortgages.

 

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