Choosing to buy a house is one of the biggest decisions you are likely to make in your lifetime. There are many factors that influence a house purchase, these include: finances, housing market conditions, and mortgage rates.
Is 2025 a good time to buy?
No-one can be sure which direction the housing market will go in. However, there are trends that are worth considering. House prices are expected to increase in 2025 at an estimated range from 2.5% to 4%. The changes in stamp duty from April 2025 are something to factor into your costs.
Mortgage rates
The mortgage rate you are offered is a huge factor in working out your costs in purchasing a home, so calculating this will help you figure out whether it’s affordable for you. Predictions for mortgage rates are that they are likely to stay at their current levels for a period and then reduce very gradually over the next couple of years. This depends on factors including world events, swap rates, and inflation.
Rental costs
Despite rental growth slowing, rent costs are unlikely to decrease in 2025. With the Renters’ Right Bill becoming law this year, landlords could decide to increase rent to cover their additional costs. It’s worth noting that landlords are only allowed to increase the rent once a year, and the bill should allow tenants to challenge any unreasonable increases.
Mortgage vs Rent
Although mortgage rates are higher than they have been in the last 10 years, they are still relatively low. It is worth comparing mortgage payments to rental costs. Having a mortgage and making monthly payments reduces your loan amount and also builds up your property equity. Fixing your rate for say two or five years can provide comfort in that you will pay a specific amount for that duration, without any increases, unlike rent which could increase 5-10% annually.
Everyone’s situation is different, you need to work out whether buying a home is manageable for you. Below are some tips to help you decide whether you are ready to step onto the property ladder:
The Financial Conduct Authority (FCA) has shared new changes to mortgage rules with the aim to simplify remortgaging, and encourage competition within the mortgage market.
4 days ago
Lloyds Banking Group has jumped on the bandwagon to boost lending for first-time buyers as they allocate an additional £4 billion to help first-time buyers on to the property ladder.
As the Loan to Income (LTI) cap has been increased to 5.5 times income, applicants who fit the First Time Buyer Boost criteria could borrow up to 22% more.
The government is introducing mortgage reforms to boost homeownership, stimulate economic growth, and make the housing market more accessible, especially for first-time buyers.
Chancellor Rachel Reeves has announced the most significant mortgage reforms in over a decade—great news for those dreaming of homeownership.
Nationwide ease their ‘Helping Hand’ mortgage designed to help first-time buyers get onto the property ladder by allowing them to borrow up to six times their income.
13 days ago
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The Financial Conduct Authority (FCA) has published a discussion paper about the future of the mortgage market in a bid to improve access for first -time buyers, self-employed, and those borrowing in retirement.
Ever wondered where the most reasonably-priced towns for families to buy are? Property company, Zoopla has identified the top 10 towns for families to live in the UK by looking at the most affordable towns, and how many people are looking in that area.
18 Jun 2025
There was a 32% increase last year in 100% loan-to-value (LTV) mortgages which are mortgages that require zero deposit. According to a recent report by chartered accountants and business advisers, Lubbock Fine, the reason behind this is buyers simply struggling to save enough for a deposit.