Mortgages for First-Time Buyers

I have been asked this question by Sarah:

My partner and I are looking to buy a house, but have been put off by the recent economic climate. I’ve read recently that mortgage lending has been rising over the last few months, so do you think now would be the right time for us to look into a mortgage as first-time buyers?

I don’t think the evidence of mortgage lending going up is all that compelling to be honest with you, whatever the papers may say. There are lots of signs that the housing market has bottomed out, but I don’t think anyone is guessing yet when it will start moving up again.

There are certainly an increasing number of mortgage offers out in the market (mostly still directly from lenders rather than through brokers) and I think interest rates are going to stay reasonably low for the foreseeable future, so I suspect that now is not a bad time to buy.

I think you would have to be a real pessimist to assume that house prices are going to go through a further collapse yet.