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Volatile mortgage rates in recent weeks have made it difficult for prospective homebuyers to know whether they should buy now or hold on until they fall or stabilise.
Conflict in the Middle East means that many lenders have raised their mortgage rates in recent weeks, amid fears that inflation may remain higher for longer thanks to rising energy costs. If you are hoping that mortgage rates might fall in coming months you might be considering postponing your purchase for now. On the other hand, if you feel that rates are as low as they’ll get for the foreseeable future, or you’ve had a change in circumstances that means you need to move, you might be feeling pressed to buy as soon as possible.
It’s hard to know exactly what to do, especially as none of us knows what the future holds, but to help you make the decision, we’ve put together this article with some key points to consider.
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Want to speak to a mortgage adviser? Speaking to an experienced adviser can help you to understand your options and get a great deal on your mortgage.
If you’re looking for expert mortgage advice, you can get a free consultation with a mortgage adviser at HUB Financial Solutions. Speak with a qualified, FCA-regulated adviser you can trust. HUB Financial Solutions is rated ‘Excellent’ on Trustpilot. Please note your home may be repossessed if you don’t keep up with mortgage repayments.
Mortgage market overview
The average asking price for a property stood at £299,677 in March 2026, according to the latest figures from Halifax, down 0.5% compared to February.
Meanwhile, year-on-year, average two, five and 10-year fixed mortgage rates have all risen. As of the start of April, the average 10-year fixed breached 6% for the first time since July 2024, according to Moneyfacts. The average two-year fixed rate reached its highest point since July 2024, and the five-year equivalent rose to its highest point since November 2023..The average two-year fixed rate is now 5.81%, while the typical five-year fixed rate is now 5.70% (as of the end of April 2026).
Amanda Bryden, head of mortgages at Halifax, said: “The recent slowdown in the housing market reflects the wide uncertainty regarding the conflict in the Middle East. Concerns about higher energy prices have pushed up inflation expectations, which in turn led to a rise in mortgage rates, reducing confidence that interest rates will be cut this year and dampening the initial momentum in the market seen at the start of the year.
“The effect on house prices will largely depend on how long‑lasting these pressures prove to be and the wider implications for the economy and unemployment. Mortgage rates are a key factor for buyers, particularly those getting on the ladder for the first time, who are already balancing the challenge of saving a deposit, with the cost of borrowing.
“As a result, many are likely to watch movements in mortgage rates closely, before making a decision on any home purchase. In this environment, professional advice can play an important role in helping people understand their options and make informed decisions that are right for their individual circumstances”.
Do you own property already or are you buying for the first time?
One important variable that might make a difference to your decision is whether you’re already on the property ladder or you’re buying for the first time.
If you’re buying for the first time, perhaps because you’ve previously always rented, and you don’t have to make your purchase now, you may decide you want to continue to rent for now so you can see how things unfold. With the economic outlook currently uncertain, there’s a chance you could regret throwing your hat into the ring too soon, particularly if property prices end up falling and interest rates go down. Equally, however, rates may not come down for some time, and it may not be practical to wait.
As well as considering mortgage rates, prospective buyers also need to remember that the amount of Stamp Duty payable when purchasing a property increased in April this year. First-time buyers now only get the first £300,000 of the value of the property stamp duty free, with 5% paid on any remainder up to £500,000.
Those moving on to their next home also pay more. Only the first £125,000 of a property purchase is Stamp Duty free, with a 2% rate charged from £125,000 to £250,000. Learn more about recent Stamp Duty changes in our guide Higher Stamp Duty costs come into effect: how much more will you pay?
If you already own a property and are thinking about moving, you might be on your lender’s standard variable rate (SVR) whilst looking for your next home. While there’s no surefire way of telling which way the market will move next, SVRs remain painfully high, with the average SVR currently at an eye-watering 7.13%.
This could be an argument for closing on a new property sooner rather than later if you’ve found a competitive mortgage deal. Alternatively, if you postpone buying, you can still remortgage but choose a deal which is portable so that you can take it across to your new property if you need to. Read more in our article When is the best time to remortgage?
Do you have a particular property in mind?
Another factor to consider is how far along in the homebuying process you are. If you’re toying with the idea of buying a home but aren’t sure, then you might decide to wait and see what happens over the next few months.
On the other hand, if you are committed to buying a specific property that you really want, you may want to press ahead regardless. After all, no one can predict the best time to buy and the perfect home doesn’t come around often.
Biting the bullet and buying now might see you pay a higher price than you would have a year ago, but it could be preferable to buying a few months later for even more – or losing out on the property altogether.
For tips on making a successful purchase, read our article 15 Common mistakes homebuyers make (and how to avoid them).
Do you have a timeframe that you need to buy within?
Waiting isn’t always a luxury that everyone has when it comes to finding a place to live. If there’s a particular time frame that you have for buying – perhaps because your relationship has ended and you need to move, or you’re renting and have already handed in your notice to your landlord, or because you need to downsize to free up some capital – this might factor into your decision. Find out more about divorce and your home in our guide Splitting the family home and mortgage during divorce, dissolution or separation.
However, it bears repeating that you shouldn’t let yourself be rushed into buying a place that isn’t right for you. If you want or need to move out soon but can’t find the right place to buy, it would probably be much wiser to try and rent somewhere for a while and take your time choosing a property. For more guidance, read our article Renting or buying – which is right for you?
Have you explored ways to bring down potential mortgage costs?
If you’re worried about buying because mortgage rates remain relatively high, and you have some savings which you’re not putting towards your property purchase as you want to keep a financial buffer available, you might want to look at ways you might be able to reduce your monthly costs.
For example, you may be considering opting for a longer mortgage term to keep your monthly payments down. Bear in mind, however, that you’ll end up paying more interest overall if you do this, and you’ll need to prove to lenders that you’ll be able to keep up with your repayments into retirement. You can find out more in our guide Mortgages for over 50s: what you need to know.
Another option you could potentially explore might be an offset mortgage, a unique kind of product that lets you link your mortgage with a savings account that you have with the same bank or building society. Doing so means that you effectively give up your ability to earn interest on your savings, but in exchange you can reduce the interest that you need to pay on your loan, or even shorten your mortgage term.
Offset mortgages usually have slightly higher rates than a typical mortgage, but could save you money in the long run if you stand to save more on your repayments than you would earn in interest on your savings. If you are very keen to buy a property, have a decent amount of savings to offset and are looking for ways to make repaying your mortgage a bit more affordable, this could be an option for you to consider. Read more in our article What is an offset mortgage?
Have you received mortgage advice?
Ultimately, there is no universal right answer to the question of when the best time to buy property is. Not only is the market incredibly unpredictable, especially right now, but everyone’s circumstances are so different that there will never be a one-size-fits-all solution. That means it’s usually well worth seeking professional independent financial advice on the mortgage options which are likely to be best for you.
Advertisement
Want to speak to a mortgage adviser? Speaking to an experienced adviser can help you to understand your options and get a great deal on your mortgage.
If you’re looking for expert mortgage advice, you can get a free consultation with a mortgage adviser at HUB Financial Solutions. Speak with a qualified, FCA-regulated adviser you can trust. HUB Financial Solutions is rated ‘Excellent’ on Trustpilot. Please note your home may be repossessed if you don’t keep up with mortgage repayments.
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