By Enzo Mora, CEO and founder of The Mortgage Brain.

Spring is traditionally one of the busiest times of the year for the housing market. And news that inflation has fallen to 3.4% in February, the lowest rate for nearly two and a half years, bodes well for any decisions the Bank of England makes on interest rates and in turn lenders' mortgage rates. 

Over the past few weeks we've seen lenders withdraw some competitive rate products quickly which has made it challenging for borrowers to make decisions. 

However, we can reserve rates up to six months in advance of your current mortgage deal ending and then check the market again just before we push the button.

Budget tax cuts will help

The recent spring budget could be Chancellor Jeremy Hunt's last, so he made a few feelgood decisions which could help to boost incomes for some mortgage applications. 

The 2% cut on National Insurance will give the average household on £60,000 an extra £754 a year. And 500,000 families will benefit from the changes to Child Benefit raising the threshold for when the charge kicks in to £60,000 earnings per annum which should mean half a million families with be better of by an average £1,260 a year.

Buying new incentives

While there was no direct help for first-time buyers in the budget, we're delighted to have been approved to work with Own New to offer new build buyers the Rate Reducer, a great new product that features reduced interest rates from just 0.99% and lower monthly payments for an initial period. All you need to do is find a home you love with a participating housebuilder. 

You will own 100% of your brand-new home and the scheme is open to anyone purchasing a new build house or flat including first time buyers and home movers on loans to values from 90% and below. And you can only get Rate Reducer direct from selected brokers which includes The Mortgage Brain.

Hurdle jumping

On average, first-time buyers (FTB) pay 25% less for a property than buyers in a wider market says the latest research from Reallymoving. During 2023, just over half (50.5%) of FTBs bought a 3-bedroom property or larger, indicating that as the average age at which people achieve home ownership has risen to 33, their needs have changed to factor in growing families. The cost of moving may also be encouraging them to jump the traditional first rung of the housing ladder, a one or two-bedroom property, in a bid to reduce their number of overall moves.

Window of opportunity

Prices are rising this year, Rightmove' latest data shows, with the average price of newly marketed properties up by 1.5% (+£5,279) in March to £368,118. This is higher than the historic average March increase of 1.0% and the biggest for 10 months as the market continues its recovery after a muted 2023. 

Despite the above average price increases at the start of the year, asking prices are still £4,776 below their peak in May 2023. For those buyers who are still deciding whether now is a good time to move, it could be a good opportunity to get in touch with our expert brokers to see how much you can borrow as we seem to be past the bottom of the market.

To find out more about The Mortgage Brain, visit www.themortgagebrain.net or call 0333 340 8888.