What Is Happening in the Mortgage Market?
With frequent headlines about the economy and the property market, it’s understandable that some homeowners and first-time buyers are wondering whether now is the right time to make their move.
However, the latest Zoopla House Price Index paints a more encouraging picture than many might expect. In line with what we’re seeing in our local areas, home sales are holding up well, demonstrating that committed buyers continue to move forward with their plans.
Mortgage Rate of the Week
For those considering buying or selling, understanding your mortgage options and affordability could be the key to unlocking your next move.
As an example of the types of products currently available, one lender is offering a homemover two-year fixed-rate mortgage until 30 September 2028, which includes a free valuation.
• Initial rate: 4.64% • Subsequent rate: 5.74% • Loan-to-value: 60% • APRC: 5.60% based on a 25-year term
Of course, the right mortgage will depend on your individual circumstances, deposit level and long-term plans, which is why professional mortgage advice is so important before making any decisions.
First-Time Buyers Are Holding Firm on Their Expectations
One of the most interesting findings from Zoopla’s latest House Price Index is that first-time buyers are not settling for less, despite affordability challenges.
In fact, the average first-time buyer is currently targeting a home worth £254,750, around £10,000 more than a year ago and 4.3% higher than the average price they were searching for in 2025. This increase is almost three times higher than the overall rate of UK house price growth.
What’s particularly noteworthy is that while there are fewer first-time buyers actively searching than this time last year, those who remain in the market are continuing to pursue the type of property they really want. This suggests that buyers are taking a longer-term view of homeownership, focusing on finding the right property rather than simply the cheapest option available.
According to The House Price Index, changes to mortgage affordability assessments have helped make more homes accessible to first-time buyers, giving some purchasers greater flexibility in what they can afford. As a result, buyers who may have assumed homeownership was out of reach could find they have more options available than they realise.
For anyone considering their first purchase, understanding your borrowing potential is often the best place to start. Speaking to an independent mortgage advisor can provide a clear picture of your budget and help you identify opportunities that may not have been available just a year ago.
At Mackenzie Smith, we’d be delighted to introduce you to a trusted independent mortgage advisor who can discuss your circumstances and help you understand the options available to you.
What Does This Mean for Homeowners Thinking of Selling?
If you’ve been considering a move but have delayed making a decision due to uncertainty around mortgage rates, now could be a good time to review your position.
Understanding both the value of your current home and the affordability of your onward purchase can provide valuable clarity. You might find that your options are broader than expected if you speak to a mortgage professional, as they have comprehensive access to the mortgage products available.
Start with a Conversation
The national headlines only tell part of the story. Understanding what is happening in your local market, alongside the mortgage options available to you, is often the key to making a confident decision.
Whether you’re a first-time home buyer exploring your options or a homeowner wondering if now is the right time to move, speaking with both an experienced estate agent and an independent mortgage advisor can help you make informed decisions.
If you’d like to explore your options, we’d be delighted to introduce you to an independent Mortgage Advisor who can provide tailored guidance and answer any questions you may have.
Alongside this, we can provide an up-to-date market valuation of your property and help you understand how local market conditions could affect your moving plans.
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