Buyers could have a ‘rare opportunity’
Bob Singh(Image: Newspage)
This is why this summer is a “golden window” for buying property, a broker has claimed.
After several years of soaring mortgage rates, weak buyer confidence and housing market uncertainty, mortgage experts believe conditions may finally be shifting back in favour of buyers. While many prospective homeowners remain cautious following recent market turbulence, broker Bob Singh said this summer could represent a rare opportunity for first-time buyers and movers willing to act before confidence fully returns.
Mr Singh, founder of Uxbridge-based Chess Mortgages, said: “The market has stagnated for a considerable period and there is a growing sense that things are starting to move again. Confidence is gradually returning, and buyers who have spent the last two years waiting on the sidelines may now be looking at a golden window this summer to purchase property.”
One factor helping sentiment is the belief that global uncertainty may begin easing in the coming months, particularly surrounding tensions involving Iran and energy markets. Combined with mortgage rates stabilising after the volatility of recent months, Mr Singh said many buyers were beginning to feel more comfortable making long-term decisions again.
He continued: “Rates remain relatively stable at the moment. There is always the possibility of short-term increases if inflation starts creeping up again, but the broader expectation is still that rates will gradually fall over time. For many buyers, securing a two or three-year fixed rate could allow them to ride out this more uncertain period before potentially refinancing later if rates improve further.”
Lenders have also become increasingly flexible in how they support borrowers, he said. A growing number of banks are now offering low-deposit mortgages, including products requiring deposits of just £5,000, while some lenders have increased borrowing limits to as much as six times income for eligible applicants.
Mr Singh said: “That flexibility is making a significant difference, particularly for younger buyers who may have struggled to save large deposits while paying high rents.”
However, he believes lenders could still go much further to help long-term renters transition into homeownership. One idea Mr Singh supports is allowing more borrowers to access interest-only mortgages at very high loan-to-value levels, particularly where monthly mortgage costs would still match or undercut local rents.
He said: “There are many renters already comfortably paying monthly rent at levels equal to or higher than potential mortgage repayments. A more flexible interest-only model for first-time buyers could help many long-term renters finally get onto the ladder.”
Under Mr Singh’s proposed approach, borrowers could initially take an interest-only mortgage before later transitioning onto full repayment terms after a fixed period or once they reach a certain age.
He added: “That would give borrowers time for wages to rise, equity to build and affordability to improve naturally over time. No lender currently offers this kind of product, but it could genuinely help unlock homeownership for a generation of renters.”
Despite his optimism around the market, Mr Singh stressed that affordability and financial protection remained essential.
He said: “As always, affordability is absolutely key. Buyers need to make sure they are borrowing sustainably and ensuring the mortgage is properly protected if circumstances change.”
But Mr Singh said this summer could represent one of the strongest opportunities buyers had seen in several years.
He said: “Markets rarely feel completely comfortable when the best opportunities appear. By the time confidence fully returns, prices and competition may already have moved higher again.”