Rent is also increasing, so it's a choice between whether you want to own a property and pay down the mortgage (albeit with higher interest) or wait and continue to pay rent.
However, rent is also likely to be increased, due to landlords having to pay more interest on their mortgages.
FTA: What about deposits?
JB: It also depends on the level of deposit they have, and how stretched the overall affordability is for them to purchase the right property.
If we are maxing them out in terms of affordability to enable them to purchase a property which they would outgrow very quickly, then I would question whether this is the right time for them to purchase.
They may not be able to move on again that easily in the short term.
It’s a really challenging time for first-time home buyers.
Mortgage rates are the highest we have seen for 14 years, and the expectation is that property values may go down, so they don't want to make the wrong decision and pay over the odds for a property.
FTA: Are the lenders still open for business? Are there any unsung heroes out there among BDMs you might want to give a shout-out to?
JB: Yes.
There was a period shortly after the 'mini' budget when products were pulled because the markets were in turmoil and the banks didn't know where to price (they were also overwhelmed with a large number of applications following the 'mini' budget).
However, most of the lenders came back to the market - it is just the products that they came back with were about 1-2 per cent higher than they were before.
Everyone focuses on the fixed rates as they have been the most popular products over the last decade, and at the moment these are the most expensive product type.
However, there are other options available, and some of the other product rates available are still at sub 4 per cent - it just depends on what's right for the individual.
Now, more than ever, it is absolutely essential to speak to an adviser about your options.
simoney.kyriakou@ft.com
