Is now a good time to buy?

[WitchyWay]

Would love your views!

With interest rates remaining high and market instability, I'm wondering; is now a good time to buy?

Our broker seems to think anytime is as good as another. Current market means you can get a good price (we have) and waiting until interest rates settle down (hopefully) could result in a faster market meaning higher asking prices again.

But we're currently struggling to get the mortgage affordability we need with our existing lender due to the last week of swap rates chaos and I'm starting to rethink the whole thing.

What do you think?

Better to buy now with higher interest rates and somewhat lower house prices (or less increases anyway)?

Or better to wait and secure lower interest rates but potentially more competition/high house prices.

For context, in South East where market is notably slower now that it was 12-18 months ago.

It depends what you're doing now. If you are paying rent and have found a house you like I would buy now.

I think if your struggling with affordability with your existing lender then it's probably better to wait. Inflation is forecast to bounce higher again which will likley feed in to more COL increases. That's likley to further soften prices imo

I agree with your broker - there are advantages & disadvantages to every kind of market. So it’s more down to an individual’s personal situation as to whether “now” is a good time to buy or not.

However, a big problem for FTBs at the moment is affordability, especially as lenders stress test to ensure buyers could still afford repayments even if the rate increased. I would try other lenders as they all have slightly different criteria. But the other option is to leave it a few months in the hope that the base rate does come down as generally expected. This will not reduce mortgage rates significantly though as the base rate falling in 24 has already been priced into fixed rate mortgage deals being offered at the moment.

Your broker is right that the time when everyone else is desperate to buy is not necessarily the best time to buy.

However it really comes down to your situation. Are you renting? Or do you need to sell before you can buy? Can you afford the kind of house you need? Do you know where you want to live for the next ten years? Have you found a house you love at the right price? If the answer to all those questions suggests you should buy, I wouldn't worry about The Right Time.