Meet three would-be homebuyers struggling to navigate the mortgage market. Our experts lend a hand
The recent sharp rises in mortgage rates have thrown the plans of buyers and homeowners alike into chaos. Budgets have been slashed as a result of higher borrowing costs and many first-timers are doubting if buying is really a good idea at all.
Should would-be buyers wait for house price falls? Is it better to take out a tracker mortgage or fix now? We ask the experts.
Teona Jgerenaia, 33, hopes to buy her first home with her husband. They can afford mortgage rates of around 5pc but are now worried about property price falls. They have a 15pc deposit and were hoping to pay up to £500,000 when they began their search several months ago in Haringey, north London, where bidding wars have been commonplace.
Because of rising mortgage rates they have had to lower their budget to between £300,000 and £350,000, but are having trouble finding a property for that price. “I’m not feeling confident,” said Ms Jgerenaia. “If prices fall we’ll be in negative equity – that’s what I’m afraid of.”