2023 could be a good time for first-time buyers to purchase their first home, according to a panel of mortgage experts who spoke to MPs on Wednesday.
As part of a special meeting of The Treasury Committee in order to examine the mortgage market, experts were asked by MPs to provide advice for struggling first-time buyers, some of whom were priced out of deals due to fluctuating mortgage rates over the past few months.
When asked to provide guidance, Ray Boulger (pictured), senior mortgage technical manager at John Charcol, advised: “I think 2023 will be a good time [for first-time buyers].
“I expect house prices to fall peak to trough between 10 and 15%.”
He continued: “If you’re a first-time buyer, the ideal situation is to be looking before the market is bottomed out.
“Then, once the indexes pick up on the fact the market is increasing, there will be a lot more buyers around.
“Keep a good eye on the market so you understand what a good buy is when you see it.
“The important thing is getting the property that really suits you and will be right for you for however long you plan to live there.”
Joanna Elson, chief executive at The Money Advice Trust, urged struggling buyers to “talk to their lender.”
She warned of buyer confusion, and the apparent imbalance between lenders and consumers.
Hoping to “ensure customers are better informed”, she called on first-time buyers to ask lenders the important questions, stating communication is key when it comes to purchasing a property for the first time.
Chris Rhodes, chief finance officer at Nationwide, warned: “Never try to beat the market.
“What you should be looking to do is assess whether or not you can afford [the property] and compare it with the option of renting or living with parents.”
He concluded: “The most important thing you can do is ensure you can afford that mortgage.”
