By Enzo Mora CEO and founder of The Mortgage Brain.

Following last week's interest rate hold, the Bank of England is saying that we can look forward to an interest rate cut this summer. While this is good news, I think this gives a false sense of future security. 

Why? Well we're seeing some lenders already adjusting their rates downward in anticipation to get ahead of the game. As far as the latter is concerned, I'm advising our customers to do the same. 

Sitting on our side of the desk can be frustrating. We know there are many customers out there who are ready to buy a property, but some are reluctant to get a mortgage application underway in case rates drop. 

Meanwhile according to Rightmove's latest data, house prices are rising - asking prices that is, as the spring selling season takes hold.

That means one thing. Getting your mortgage sorted in principle now means you'll be in a strong position to negotiate the price of the property, as you'll know what you can borrow. Then we'll be able to access better mortgages deals for you, should the rates fall. What's not to like about that scenario.

How long is a mortgage?

Sticking with the Bank of England, it has revealed new data showing that in the final quarter of 2021, nearly 31% of new mortgages had an end date beyond the applicant's state pension age. At the end of 2023, 42% of new mortgages fell into this category. 

Of course this doesn't mean you won't have paid off the mortgage by then. As incomes rise and equity increases with the property it should be possible to find a better deal and even overpay a mortgage, so you pay it off quicker and save money in the process. Our expert mortgage advisers can talk you through the best options.

Age differences

Meanwhile, research from Legal & General says that more older buyers are looking to step onto the housing ladder with an increase of 13% at the start of this year of 56-65 year olds searching for their first property compared to the same period last year. This figure suggests a growing number of buyers are having to wait until their late 50s and beyond but are still keen to take their first step onto the housing ladder. 

There could be a number of reasons for this including being given an inheritance later in life. While the number of mortgages available to older applicants are fewer, we can look at your circumstances and make suggestions so do get in touch with our mortgage team if you would like to find out more.

Help still on tap

The research also showed a 37% increase in 18-30 year-old first-time buyers searching for a property, and a 33% increase in 31-40 year-old first-time buyers, when comparing Q1 2024 and Q4 2023. 

The Bank of Family is still playing a key role in the housing market, either by gifted deposits or via practical support to help family members who are trying to save for their first home. 

This support from parents, grandparents, and other family members reached record levels in 2023, helping 318,400 property purchases with an astonishing £8.1 billion worth of lending. More than half (58%) of the value of intergenerational support goes to help first-time buyers. No one ever said buying a property was simple but using a mortgage broker like The Mortgage Brain can definitely ease the pain.

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