How to make the most of the mortgage market

Traditionally, first time buyers represent between 30% and 35% of mortgage applicants; currently the figure is only 9%. In addition, many buyers find they have been priced out of moving up the ladder. Price stability for a few years would help first time buyers re-enter the market; as wages increase and interest rates begin to fall buyers would find the cost of repaying mortgages will fall and they will be able to borrow more and therefore return to the market.

Homeowners will also find the ability to borrow more and falling interest costs will result in them moving up the housing ladder. As a result of these likely events I would not advise borrowers to enter into long term fixed rate mortgages at the moment. As the Bank of England base rate falls, so will variable rate, discounted, and tracker mortgages.

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