I’m a mortgage expert – here’s why housing market is now a buyers’ market | Personal Finance | Finance

Data published by the Bank of England this morning suggests nerves are already building ahead of the Autumn Budget. The number of mortgage approvals fell 500 in August, to 64,700, while approvals for remortgaging decreased by 900 in August, to 37,900. September has also been quieter than usual. It’s understandable that some people may want to sit things out until they know how the Budget could impact their finances.

But while nerves are building, buyers could benefit from holding their nerve. Currently, we’re in a buyers’ market and there are bargains to be had for would-be purchasers. According to Rightmove, the average asking price for a home in Great Britain is now 0.1% lower than a year ago, which underlines the opportunity for buyers to negotiate hard and snap up their dream home for a competitive price.

This is especially the case for first-time buyers who have no home to sell. Those with a mortgage agreed in principle are in a strong position to haggle hard on what they pay. Because sellers will often blink first in the current climate.

It also helps that some lenders are improving their rates at higher loan-to-values, in other words for borrowers with smaller deposits.

Lenders are keen to get the mortgage market moving and are making it easier and cheaper for people with smaller deposits to buy.

Reflecting this, last week Barclays cut rates for borrowers with deposits of as little as 5% as it seeks to stimulate the market from the bottom up.

There are also more options now for first-time buyers as lenders become increasingly innovative and find new ways to improve affordability.

There are now products around for those with as little as £5,000 as a deposit and even 100% mortgages have made a comeback. Some lenders are now able to lend 5.5 or even 6 times income for the right buyer.

Though the next two months will be uncertain as the Budget looms, borrowers should remember that times of uncertainty can be a great time to buy.

If the Budget isn’t as bad for the property market as some expect, demand could pick up sharply and asking prices could rise again, putting sellers back in the driving seat.

But, as ever, speak to a broker and get professional advice before you make your move.