Speaking on a video debate hosted by Mortgage Solutions in association with Accord Mortgages, Morrey said people might see speculation that house prices will fall by 10 per cent and think then would be a good time to buy. However, he added: “In reality, if you’re putting down a 10 per cent deposit, that probably hasn’t changed much nor has the loan size.
“And if your payments haven’t changed that much just by waiting that extra time… if you’re waiting two years for the bottom of the market, that’s two years more rent all gone to the landlord. That is also two years of your life still not owning a property that you wish to own.”
He suggested that even if interest rates were high and the market did not look strong, “if you find a property that you like, [that] you think can be your home and you can afford it, buy it.”
‘Avoid the negative media’
He also said waiting for the market to get to the bottom could heighten the risk of there being fewer homes to purchase as choice tended to dwindle in such circumstances.
Morrey added: “First-time buyers should avoid the negative media and buy as fast as possible.”
Ed Checkley, managing director of Advias, said when looking at mortgage rates, the pricing of lower loan-to-value loans was not too different from what they were before rates started to rise.
Jeremy Duncombe, director of intermediaries at Accord Mortgages, agreed and said only a proportion of mortgage debt was interest and a three or four per cent rise did not indicate a tripling or quadrupling of monthly payments.
Referring to the Covid lockdowns and the uncertainty of the market at the time, Duncombe said anyone who waited for prices to come down then would have “sorely missed out” as they only went up even further.
He also said for anyone in need of a 35-year term, which is becoming increasingly common, it could be better to get on the housing ladder sooner.
Watch the video [6:27] hosted by Victoria Hartley, contributing editor of Mortgage Solutions, featuring Jeremy Duncombe, director of mortgage distribution at Accord Mortgages, Nick Morrey, technical director at Coreco and Ed Checkley, managing director of Advias.
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