Paisley Mortgages

29/10/2026

19/10/2026

Small-deposit mortgages are making a comeback: High-LTV lending hits its highest share since 2008

Struggling to save a huge deposit for your first home? New figures show mortgages for buyers with smaller deposits are accounting for a bigger share of lending. But a 5% deposit does not necessarily mean buying will be affordable, so here is what first-time buyers need to know.

For many aspiring homeowners, it is not the monthly mortgage payment that first stops them in their tracks. It is the deposit.

Saving tens of thousands of pounds while paying rent and everyday living costs can make buying a first home feel frustratingly distant.

But there is some encouraging news for those who have been struggling to build a large deposit.

The latest Bank of England mortgage lending figures show that 8.4% of gross mortgage advances in the second quarter of 2026 were made at loan-to-value ratios above 90%.

That is the highest share since the second quarter of 2008.

It is also up from 8% in the first three months of this year and 7% a year earlier.

In simple terms, mortgages involving relatively small deposits are playing a bigger role in the market than they have for many years.

For first-time buyers who assumed they would need a substantial deposit before home ownership was even worth considering, that makes this an interesting development.

But there is an important distinction.

The 8.4% figure covers gross mortgage advances across the market. It is not a figure for first-time buyers alone.

So what does it actually tell us, and could a smaller deposit make buying a home more achievable?

What does ‘high LTV’ actually mean?

LTV stands for loan-to-value. It measures the mortgage as a percentage of the property’s value.

If a buyer has a 10% deposit and borrows the remaining 90%, that would ordinarily be described as a 90% LTV mortgage.

A buyer putting down 5% and borrowing 95% would ordinarily require a 95% LTV mortgage.

The latest Bank of England data show lending above 90% LTV has become significantly more prominent.

Within the overall figures, mortgages above 95% LTV remained a much smaller part of the market, accounting for 0.5% of gross advances in the second quarter.

That distinction matters. The figures do not suggest lenders are abandoning deposits altogether. They show that lending where borrowers have comparatively little equity is accounting for a larger proportion of mortgage business.

Why this could matter to first-time buyers

The deposit remains one of the most formidable barriers facing people trying to buy their first home.

The latest English Housing Survey found that recent first-time buyers in England had a median deposit of £36,500 in 2024-25.

The mean, or average, was much higher at £78,131, partly reflecting buyers with particularly large deposits. The survey defines recent first-time buyers as households that bought their first main home during the previous three years.

There is another revealing figure.

Around 59% of recent first-time buyers in the survey put down less than 20% of their property’s purchase price, including 16% who provided a deposit of between 1% and 9%.

In other words, buying a first home does not always require the enormous deposit that prospective buyers may imagine.

That does not mean everybody with a 5% or 10% deposit will qualify for a mortgage. But it does mean it can be worth establishing what is actually possible before assuming the size of your deposit automatically rules you out.

Government support for 5% deposit mortgages is now permanent

There has also been a significant change behind the scenes.

Since July 2025, the Government has operated a permanent Mortgage Guarantee Scheme, designed to support the availability of mortgages between 91% and 95% LTV.

HM Treasury says the scheme can enable eligible first-time buyers and home movers across the UK to purchase a property with a deposit as small as 5%.

The scheme works by giving participating lenders a government-backed guarantee against a portion of potential losses on qualifying mortgages.

Crucially, however, this is a guarantee to the lender, not a promise to the borrower that their mortgage application will be accepted.

Borrowers still need to meet the lender’s individual criteria and affordability assessment.

Nor does every mortgage between 90% and 95% LTV necessarily have to be offered through the Government scheme.

First-time buyers remain a big part of mortgage lending

First-time buyers themselves continue to represent a substantial part of the mortgage market.

FCA data show that first-time buyers accounted for 27.3% of total gross mortgage advances in the second quarter of 2026.

Home movers accounted for a further 28.8%.

That does not mean conditions have suddenly become easy for new buyers.

Affordability remains a major hurdle, and having enough cash for a deposit is only one part of the equation.

But the rise in high-LTV lending is evidence that borrowers with smaller deposits have not disappeared from the mortgage market.

The catch with borrowing 95%

A small deposit can get you to the starting line sooner, but there are trade-offs.

The first is straightforward: the more of the property price you borrow, the larger your mortgage debt will be.

Mortgage pricing can also vary significantly according to LTV. The rate available to somebody borrowing 95% of a property’s value may be different from the rate available to a borrower with considerably more equity.

This is why focusing only on the minimum deposit can be misleading.

If you already have close to a larger deposit, it can be useful to understand whether putting down more could alter the mortgage options available.

Conversely, if raising another substantial sum would take several years, it may be worth finding out what options currently exist with the deposit you already have.

Neither route is automatically right.

Small deposits also leave less room if property prices fall

Buyers also need to think about equity.

If you purchase a property with only a small deposit, you begin with relatively little equity of your own.

Should the property’s value subsequently fall, that equity can be reduced quickly.

In some circumstances the mortgage outstanding could become greater than the property’s market value, commonly known as negative equity.

This can make selling or remortgaging more difficult.

It is therefore important not to interpret the increased availability and use of high-LTV mortgages as meaning that borrowing as much as possible is necessarily sensible.

A mortgage needs to be affordable not just on completion day, but throughout the period you expect to hold it.

A 5% deposit does not mean a lender will lend you the other 95%

This is perhaps the most important point.

The existence of a 95% LTV mortgage does not mean somebody with a 5% deposit automatically qualifies.

Mortgage lenders are required to assess whether a borrower can afford to repay the money being borrowed5.

The FCA’s responsible lending rules require firms to consider whether a customer will be able to repay the sums borrowed and the interest due.

Income, regular expenditure and existing borrowing can therefore all influence affordability.

Individual lender criteria can also differ.

Your employment circumstances, credit history, the type of property you are purchasing and other elements of the application may affect the mortgages available.

This is why two first-time buyers with identical deposits and looking at similarly priced homes could potentially have very different borrowing options.

Longer mortgage terms are already becoming more common

There is another sign of how first-time buyers are adapting to affordability pressures.

The English Housing Survey found that 62% of recent first-time buyers with mortgages had taken repayment terms of 30 years or more in 2024-25.

Five years earlier, in 2019-20, the proportion was 47%.

A longer term can reduce the initial monthly repayment on a repayment mortgage, all else being equal, but it also generally means paying interest for longer and potentially paying more interest overall.

It should therefore be considered as part of the overall cost and suitability of the mortgage, rather than simply as a way to achieve a lower monthly figure.

So, should you buy with a 5% deposit?

There is no universal answer.

For one buyer, purchasing with a smaller deposit may be appropriate because their income comfortably supports the mortgage and waiting several more years to build a larger deposit does not suit their circumstances.

For somebody else, continuing to save could increase their equity, reduce the amount they need to borrow and potentially change the mortgage products available to them.

What the latest figures do suggest is that a small deposit should not automatically be treated as the end of the conversation.

High-LTV mortgages are accounting for their largest share of gross advances since 2008, and permanent government support is in place for the 91% to 95% LTV part of the market.

If buying your first home is something you are considering, finding out what you may realistically be able to borrow can be a sensible starting point.

As mortgage brokers, we can look at your deposit, income, commitments and circumstances and explain the mortgage options that may be available to you.

That can also help you understand whether using your current deposit or continuing to save could make a meaningful difference to your options.

Your home/property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.

There may be a fee for mortgage advice. The precise amount of the fee will depend on your circumstances.

Think carefully before securing other debts against your home/property.

12/10/2026

Why are mortgage rates rising when Bank Rate hasn’t changed?

The Bank of England has kept its headline interest rate at 3.75%, yet mortgage borrowers are seeing fixed-rate deals become more expensive. So what is going on, and what should you do if you are buying a home or your current deal is coming to an end?

If you thought an unchanged Bank Rate should mean unchanged mortgage rates, you would be forgiven for wondering what has happened to the market.

On 17 September, the Bank of England’s Monetary Policy Committee voted to keep Bank Rate at 3.75%.

Yet the cost of new fixed-rate mortgages has been moving higher.

In fact, the Bank of England says its measure of quoted rates on two-year fixed-rate mortgages is now around 0.95 percentage points higher than it was before the conflict in the Middle East began earlier this year.

For borrowers, that can seem contradictory.

It isn’t.

The reason is that Bank Rate is only one part of the story when lenders decide how much to charge for a fixed mortgage.

And right now, the financial markets that help determine the price of those mortgages have been moving even though Bank Rate itself has not.

Bank Rate stayed at 3.75%, but the decision was not unanimous

First, it is worth looking at what actually happened at the Bank of England’s latest meeting.

The Monetary Policy Committee voted six to three to leave Bank Rate unchanged at 3.75%. Three members wanted an immediate increase to 4%.

The Bank is grappling with renewed inflationary pressure, particularly from higher energy prices.

UK Consumer Prices Index inflation reached 3.1% in August, above the Bank’s 2% target, and the Bank said inflation was likely to rise further over the coming quarters.

That does not mean Bank Rate will necessarily rise at the next meeting.

But it does help explain why financial markets have become more concerned about how long interest rates could remain elevated.

And that matters enormously for fixed mortgages.

Fixed mortgage rates do not simply follow Bank Rate

This is probably the biggest misconception about mortgage pricing.

Bank Rate influences borrowing costs across the economy, but lenders do not generally set a two-year or five-year fixed mortgage simply by taking today’s Bank Rate and adding a margin.

Fixed mortgages are much more closely linked to what are known as overnight index swap rates, or OIS rates.

The Bank of England describes medium-term OIS rates as key reference rates for fixed-rate mortgages.

You can think of these market rates as reflecting the price of interest rates over the period ahead, together with a premium investors require for uncertainty.

So a lender offering you a two-year fixed mortgage today is interested not just in Bank Rate this morning, but in the expected cost and risk of providing fixed-rate money over the next two years.

When those market rates rise, fixed mortgage rates can rise too. They can do so without the Bank of England changing Bank Rate at all.

And those market rates have risen

This is what has happened during 2026.

The Bank of England says UK financial conditions have tightened, driven by increases in short-term OIS rates.

Its September minutes say those increases have passed through “full and fast” into important borrowing rates for households and businesses.

The result is that quoted two-year fixed mortgage rates are around 95 basis points, or 0.95 percentage points, higher than before the latest period of geopolitical disruption began.

The Bank had already recorded the effect in its July Financial Stability Report.

At that point, its average quoted rate on a two-year fixed mortgage at 75% loan-to-value was 4.92%, while the equivalent rate at 90% LTV was 5.32%.

Those figures were respectively 0.72 and 0.75 percentage points higher than at the time of its previous December Financial Stability Report.

Those July figures should not be treated as today’s available mortgage rates. Mortgage pricing can change frequently and the rate available to an individual borrower will depend on their circumstances and the mortgage being considered.

But they demonstrate how substantially the market moved.

Does the market think Bank Rate is going up?

Financial markets have certainly become more nervous about interest rates, but there is an important trap here.

The Bank’s September minutes say the UK short-term interest-rate curve had moved higher and was peaking at around 4.9% by the end of 2027.

It would be wrong, however, to describe that as a prediction that Bank Rate will reach 4.9%.

The Bank of England has specifically warned that these market curves include risk premia, effectively compensation investors demand for uncertainty, as well as expectations about future Bank Rate.

Bank research published in July found that unusually high risk premia were contributing significantly to the upward slope of the UK interest-rate curve.

So the important message for mortgage borrowers is not that a particular Bank Rate rise is inevitable.

It is that uncertainty about future inflation and interest rates has itself become more expensive.

That can feed directly into fixed mortgage pricing.

What does this mean if you already have a fixed mortgage?

If you are part-way through a fixed-rate mortgage, movements in new mortgage pricing do not normally change the interest rate you are currently paying.

Your fixed rate remains fixed for the agreed period, subject to the terms of your mortgage.

The issue becomes more important as that deal approaches its end.

UK Finance estimated that around 1.8 million fixed-rate mortgages are due to mature during 2026, which means refinancing remains a major issue for households this year.

For some borrowers, the change could be significant.

The Bank of England estimated in July that nearly 750,000 households paying mortgage rates below 3% were due to reach the end of fixed deals during 2026. It estimated an average monthly repayment increase of around £170 for those borrowers.

That is an average projection, not what every household will experience.

The actual outcome depends on the remaining mortgage balance, term, loan-to-value, existing rate, new product and individual circumstances.

Should you wait for Bank Rate to fall?

This is where trying to time the mortgage market becomes difficult.

It can be tempting to think: “I’ll wait until the Bank of England cuts rates, then I’ll remortgage.”

But a future reduction in Bank Rate does not guarantee that fixed mortgage rates will fall at the same time or by the same amount.

If financial markets have already anticipated the change, some or all of it may already be reflected in fixed mortgage pricing.

Conversely, fixed rates can rise before Bank Rate increases if financial markets begin pricing in greater inflation or interest-rate risk.

That is precisely why watching Bank Rate alone does not give you the full picture.

For somebody approaching the end of a mortgage deal, the more useful question is usually not “What will Bank Rate do next?” but “What options are available to me, and what would each mean for my monthly and overall costs?”

What if you are buying a home?

The same principle applies to homebuyers.

The headline Bank Rate does not tell you what mortgage rate you will actually be offered.

Rates can vary according to your deposit, loan-to-value, income and expenditure, credit profile, property, mortgage term and individual lender criteria.

A larger deposit may open access to different mortgage options, while fees can also materially change the overall cost.

This means comparing mortgages on headline interest rate alone can be misleading.

The cost of the deal, fees, incentives, repayment structure, early repayment charges and how long you expect to keep the mortgage can all matter.

Don’t panic, but don’t assume nothing has changed

An unchanged Bank Rate can create the impression that the mortgage market is standing still.

At the moment, it isn’t.

The Bank of England’s own data show that market interest rates have risen and that those increases have been passing through to mortgage pricing.

That does not mean mortgage rates will continue rising. Markets can move in either direction, sometimes rapidly.

It also does not necessarily mean somebody approaching the end of their mortgage should rush into a new deal.

But it does make understanding your position important.

If your existing fixed mortgage is approaching its end, or you are considering buying or moving home, we can review your circumstances and explain the mortgage options that may currently be available.

That allows you to make a decision based on the costs and features available to you rather than trying to predict where interest rates will go next.

Your home/property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.

There may be a fee for mortgage advice. The precise amount of the fee will depend on your circumstances.

Think carefully before securing other debts against your home/property.

05/10/2026

Mortgage ending in the next six months? Why it may pay to start looking now

Around 1.8 million fixed-rate mortgages are expected to come to an end during 2026. If yours is one of them, waiting until the final few weeks to investigate your options could leave you with less time and less choice.

If your mortgage deal is due to expire between now and next spring, there is a date worth putting in your diary.

Not the day your fixed rate actually ends.

Six months before it.

That is because borrowers approaching the end of a fixed mortgage can often start investigating their next deal well before their existing rate expires.

And hundreds of thousands already are.

The latest Financial Conduct Authority figures show that 381,364 mortgages locked into a new deal up to six months before maturity during the second quarter of 2026 alone.

That does not mean everybody whose mortgage ends within six months should immediately switch.

But with mortgage pricing volatile and a large number of fixed deals approaching maturity, it does mean there is a strong case for understanding your options before the deadline is looming.

Why are so many borrowers approaching a mortgage crunch point?

Britain went through a huge refinancing cycle when borrowers fixed their mortgages during and after the pandemic.

Many of those deals are now coming to an end.

UK Finance forecast that around 1.8 million fixed-rate mortgages will expire during 2026, following approximately 1.6 million maturities during 2025. It expects both remortgaging to another lender and product transfers with existing lenders to remain substantial parts of the mortgage market this year.

For some households, the end of their deal may be relatively uneventful.

For others, particularly borrowers who are still paying the very low rates available several years ago, the difference could be much more noticeable.

The Bank of England estimated in its July Financial Stability Report that nearly 750,000 households paying mortgage rates below 3% were due to roll off fixed deals during 2026.

On the market assumptions used by the Bank at the time, those households were projected to see an average monthly repayment increase of around £170 when refinancing.

That is an average projection, not a forecast for any individual borrower. The actual change will depend on factors including the mortgage balance, remaining term, loan-to-value, new mortgage rate and type of deal selected.

But it explains why leaving the conversation until the last minute can be risky.

What happens if you simply do nothing?

When an initial fixed or discounted mortgage deal comes to an end, borrowers who have not arranged another deal will normally move onto their lender’s reversion rate.

That is often the lender’s standard variable rate, or SVR.

The FCA says a lender’s reversion rate will typically be higher than the fixed rate a borrower has been paying.

That does not automatically mean a new fixed mortgage will always be cheaper, and an SVR may offer flexibility that suits some borrowers.

But accidentally ending up on a reversion rate because you did not review your mortgage is very different from choosing one deliberately after comparing the alternatives.

Why six months?

There are two important reasons.

First, mortgage offers can last for several months.

The FCA says an accepted mortgage offer will normally remain valid for between three and six months, depending on the lender. This means borrowers may be able to arrange their next mortgage before the existing deal actually finishes, with the new mortgage taking effect at the appropriate time.

Second, there is the Government’s Mortgage Charter.

The Charter was introduced in 2023 and currently has 47 lender signatories representing around 90% of the mortgage market.

Among its commitments, participating lenders allow customers to lock in a new deal up to six months before the end of their existing fixed rate.

That is exactly what more than 381,000 mortgages did between April and June this year.

But what if mortgage rates improve after you secure a deal?

This is where starting early can be particularly useful.

Under the Mortgage Charter, customers of participating lenders who have locked in a new deal can request a better like-for-like deal before the new rate starts if one becomes available.

That does not mean every mortgage can automatically be switched to any cheaper product in the market.

The Charter commitment relates to participating lenders and a better like-for-like deal, and individual lender processes and eligibility requirements still apply.

If you are considering moving to a completely different lender, the position may also be different.

But the principle is useful: reviewing your mortgage early does not necessarily mean making an irreversible bet on today’s market.

And today’s mortgage market is moving

There is another reason why the six-month window is particularly relevant now.

Bank Rate was held at 3.75% on 17 September, but fixed mortgage pricing has not stood still.

The Bank of England says its measure of quoted two-year fixed mortgage rates is around 0.95 percentage points higher than before the recent Middle East conflict, reflecting increases in the wholesale market interest rates that feed into lenders’ pricing.

No one can know with certainty where mortgage rates will be by the time your existing deal expires.

They could rise, fall or move very little.

That is why reviewing early should not be confused with trying to predict the market.

The objective is to know what your choices are.

Staying with your lender or moving elsewhere?

When your mortgage ends, there are broadly two routes to investigate.

You may be able to select a new product with your existing lender, commonly known as a product transfer.

Alternatively, you can consider remortgaging to another lender.

There can be meaningful differences between the two.

The FCA says that, where borrowers are up to date with their payments and stay with their existing lender without borrowing more, they should generally be able to move to a new deal without another affordability assessment, although exceptions can apply.

Moving to a different lender will normally involve a fresh affordability assessment.

But that does not mean staying with your existing lender is automatically the better option.

Another lender may have a mortgage that is more suitable for your circumstances. Conversely, once fees, valuation requirements, legal work and other considerations are taken into account, remaining with the existing lender may sometimes make more sense.

That is precisely why comparing the overall proposition, rather than simply looking for the lowest headline rate, matters.

Your loan-to-value may have changed too

There is another reason not simply to roll your mortgage over without checking.

Your position today may be different from when you arranged your existing deal.

You may have repaid a portion of the mortgage. The value of your home may also have changed.

Together, those factors determine your current loan-to-value, or LTV.

If your LTV has fallen sufficiently, you may now fall into a different lending band and potentially have access to mortgage options that were not available when you originally borrowed.

The reverse can also happen if a property’s value has fallen.

A proper review can therefore involve more than replacing one fixed rate with another.

It can include reassessing your remaining balance, property value, mortgage term, monthly budget and future plans.

Don’t forget early repayment charges

Starting the process early does not necessarily mean completing a remortgage immediately.

If your existing mortgage is still within its fixed or discounted period, leaving it prematurely may trigger an early repayment charge.

The cost can be significant.

That is why a new deal would normally be arranged to begin at or around the point the existing mortgage can be repaid without that charge, unless there is a specific reason for considering an earlier switch.

Any early repayment charge, new product fee, valuation cost, legal cost or other relevant expense should be considered when assessing whether changing mortgage makes financial sense.

What if your circumstances have changed?

Six months also gives you valuable breathing space if life looks different from the last time you applied for a mortgage.

Perhaps you have become self-employed.

Maybe your household income has changed, you have taken on additional borrowing, your family has grown or you are considering moving home.

None of those circumstances automatically prevents a remortgage.

But they can affect the lenders and products available.

Discovering an issue several months ahead of the mortgage expiry date usually gives more opportunity to investigate the alternatives than discovering it a fortnight beforehand.

Is remortgaging activity already picking up?

There are signs that more households are reviewing their mortgages.

Bank of England figures show 34,500 remortgages to a different lender were approved in July, up from 34,100 in June. These statistics do not include product transfers where the borrower remains with the same lender.

Combined with the FCA’s figure showing more than 381,000 mortgages secured a deal ahead of maturity in the second quarter, it is clear that a large refinancing market is already under way.

So, should you lock in a new mortgage today?

Not necessarily.

Starting a review six months before your fixed mortgage ends is not the same thing as recommending that you take a particular mortgage immediately.

The right outcome depends on your circumstances, existing mortgage, future plans and the products available.

Rates may also change during the period before your mortgage expires.

The value of starting early is that you can establish what your existing lender may offer, investigate whether alternatives are available elsewhere and understand the likely costs before you need to make a final decision.

In a mortgage market capable of moving quickly, information and preparation can be valuable.

Mortgage ending before next spring?

If your current mortgage is due to end within the next six months, now may be an appropriate time to review it.

As mortgage brokers, we can look at your existing mortgage, outstanding balance, loan-to-value and circumstances and explain the options that may be available from your current lender and, where appropriate, elsewhere in the market.

Reviewing your mortgage does not commit you to changing lender or taking a new product.

It can simply give you a clearer picture of what happens when your current deal ends and enough time to consider your options.

Your home/property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.

There may be a fee for mortgage advice. The precise amount of the fee will depend on your circumstances.

Think carefully before securing other debts against your home/property.

28/09/2026

Autumn bounce is here, but buyers may hold more cards as homes for sale hit a 12-year high

House hunters are returning after the summer lull, but a bumper choice of properties means buyers can afford to be choosier. Here is what the changing autumn market could mean if you are planning a move.

Britain’s housing market is showing signs of waking up for autumn.

New sellers increased their asking prices by 0.7 per cent in September, equivalent to £2,441, taking the average asking price to £367,440, according to the latest Rightmove House Price Index.

It is the first monthly increase since May and slightly stronger than the average 0.5 per cent September rise recorded over the past decade.

But look beyond that headline and something potentially more significant is happening for would-be buyers.

There are now more homes available for sale than at any comparable point in the past 12 years, while the number of buyers making enquiries is still 9 per cent lower than a year ago.

In other words, buyers are returning, but they are shopping in a market where they have plenty to choose from.

And that could change the balance of negotiations.

Buyers are coming back, but there is no feeding frenzy

There are certainly signs of renewed activity.

Rightmove recorded a 5 per cent jump in buyer demand during the first week of September, compared with an average increase of just 0.4 per cent during the same week over the previous five years. London and the South West saw particularly strong post-summer increases.

The latest survey from the Royal Institution of Chartered Surveyors also suggests conditions are becoming less subdued.

Its measure of new buyer enquiries improved for a fifth consecutive month in August, from a net balance of -28 per cent in July to -19 per cent. Agreed sales also became less negative, moving from -30 per cent to -17 per cent. These figures are survey balances showing whether more estate agents are reporting increases or decreases, rather than the percentage change in actual transactions.

That is an improvement, but it is not the same as saying the market is booming.

Zoopla’s latest research tells a similar story. It found 5 per cent more homes for sale than a year earlier, while property searches were 7 per cent higher. Yet the number of sales being agreed remained 6 per cent below last year’s level.

For buyers, that combination matters.

More people may be looking, but sellers are competing for their attention.

So, can buyers start negotiating harder?

Potentially, yes, although the strength of your position will depend heavily on the property and local market.

A home that has just come onto the market at a realistic price in a sought-after area may still attract considerable competition. A property that has been sitting unsold for weeks, has already had its asking price reduced, or is one of many similar homes available locally may be a different story.

Rightmove’s figures illustrate how dramatically conditions vary around Britain.

Around 91 per cent of homes coming to market in Scotland are currently finding a buyer, compared with 71 per cent in the North West, 56 per cent in the South East and just 42 per cent in London.

That is why national headlines can only tell you so much.

A buyer in Edinburgh may be negotiating in very different conditions from someone looking at flats in London or family homes in the South East.

It also means buyers should not assume that a high level of supply automatically translates into a large discount.

Instead, it gives them something equally valuable: choice.

If there are several properties that meet your requirements, you may be in a better position to walk away when the numbers do not work.

Sellers cannot ignore the competition

For homeowners hoping to move this autumn, the message is slightly different.

The market is active, but simply putting a property up for sale does not guarantee a queue of buyers.

Rightmove says 74 per cent of homes that have sold so far this year were priced at a level that did not subsequently require an asking-price reduction.

With stock at a 12-year seasonal high, buyers have plenty of alternatives if they believe a property is overpriced.

That could make the initial asking price particularly important this autumn.

There is also a distinction worth making between asking prices and actual selling prices.

Rightmove’s £367,440 figure measures the prices being requested by new sellers. The latest official UK House Price Index, which is based on completed transactions and therefore runs several months behind the market, puts the average UK property price at £273,000 in July, up 1.4 per cent from a year earlier.

Nationwide’s separate mortgage-based index also described price growth as subdued, recording annual growth of 1.6 per cent in August and a seasonally adjusted monthly increase of 0.2 per cent.

The broad picture, therefore, is one of modest price growth rather than another rapid surge in values.

Being ready to buy could matter more than trying to time the market

For anyone planning a move, the temptation is to wait for the perfect combination of cheaper property and cheaper borrowing.

The difficulty is that housing and mortgage markets rarely move neatly in the same direction at the same time.

The Bank of England kept Bank Rate at 3.75 per cent on 17 September, but borrowing costs remain an important constraint on affordability and the Bank has noted that mortgage rates are materially higher than they were earlier in the year.

So rather than trying to guess whether prices or mortgage rates will be higher or lower in a few months’ time, buyers may find it more useful to understand what they can comfortably afford today.

Before making an offer, consider your deposit, likely monthly mortgage payments, purchase costs and how much financial breathing room you want to retain after moving.

Having a clear idea of your borrowing position can also help you judge whether an apparently attractive property price genuinely works for your household finances.

What should you do if you are thinking of moving?

For buyers, the increased choice of property is welcome, but affordability should still come first. Research comparable properties, find out how long a home has been on the market and avoid stretching your budget simply because you have found somewhere you like.

For sellers, this is a market where realistic pricing matters. An ambitious asking price may simply encourage buyers to look at one of the many competing properties available.

And for anyone who needs a mortgage to make their move happen, understanding the financing before becoming emotionally committed to a property can put you in a much clearer position.

If you are thinking about buying or moving home, we can help you understand your mortgage options and what you may be able to borrow based on your individual circumstances. Mortgage availability and the amount you can borrow are subject to lender criteria and affordability assessments.

Your home/property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.

There may be a fee for mortgage advice. The precise amount of the fee will depend on your circumstances.

Think carefully before securing other debts against your home/property.