‘Double cost’ warning for anyone sorting a mortgage right now | Personal Finance | Finance

A mortgage expert has warned that sitting tight is the wrong strategy for buyers right now, with those who delay risking a “double cost” should both property prices and mortgage rates rise at the same time. Many prospective homebuyers have spent much of 2026 on the sidelines waiting for mortgage rates to drop, according to broker Rohit Kohli.

However, with inflation remaining stubbornly high and financial markets growing increasingly volatile, he cautioned that such an approach was starting to look ever more precarious. The mortgage market has shifted considerably since the turn of the year.

Expectations that rates would gradually ease throughout 2026 have been thrown into disarray by rising inflation, higher oil prices linked to the conflict involving Iran, and mounting political and economic uncertainty both at home and abroad. A number of lenders have begun repricing mortgage products upwards once again, leaving buyers questioning whether postponing a purchase could ultimately leave them considerably worse off.

Rohit Kohli, director of Romsey-based The Mortgage Stop, said one of the most common errors buyers make was assuming there would eventually be a “perfect” moment to buy.

He added: “A lot of buyers delayed decisions earlier this year because they expected mortgage rates to come down significantly. The problem is that markets and economies rarely move in straight lines. The idea that buyers can wait for low rates, falling house prices and complete economic stability all at the same time is usually unrealistic.”

While the Bank of England base rate remains at 3.75%, fixed-rate mortgages are largely governed by swap rates and long-term inflation expectations rather than the current base rate alone. With inflation climbing back to 3.3% and markets increasingly factoring in the prospect of rates remaining elevated for longer, Kohli cautioned that holding out for cheaper borrowing costs could prove a costly miscalculation.

He added: “The ‘wait for lower rates’ strategy is looking increasingly risky because fixed mortgage pricing is driven by expectations around inflation and long-term economic conditions. If inflation remains sticky and markets stay nervous, mortgage rates could rise before they fall.”

Meanwhile, house prices themselves have proved remarkably resilient despite mounting affordability pressures. According to Halifax, the average UK property now costs just under £300,000, with both Halifax and Nationwide anticipating prices to hold broadly steady over the year ahead. Mr Kohli warned that prospective buyers who delay their purchase could face a “double cost” should both property values and mortgage rates climb at the same time.

He said: “Even relatively modest house price growth can mean paying thousands more for the same property a year later. When you combine that with potentially higher mortgage rates, the ‘double cost’ of waiting can become far more expensive than many buyers realise. We’ve seen clients who delayed buying earlier in the year having to find another £5,000 to £10,000 for the deposit as a result of the movements.”

Crucially, Mr Kohli emphasised that affordability had improved considerably more than most people appreciated. Lending criteria have relaxed substantially over the past 18 months and first-time buyer activity climbed sharply in 2025 despite elevated borrowing costs. Nevertheless, he cautioned buyers against overextending themselves financially or being swayed by short-term media coverage.

Mr Kohli added: “The right time to buy is usually when your own circumstances are stable, not when the news cycle feels comfortable. People should focus on what they can comfortably afford today, build in a financial buffer and avoid borrowing right up to their maximum.”

He further encouraged buyers to seek expert guidance rather than depending entirely on headline mortgage rates: “Mortgage deals, lender criteria and pricing are changing constantly in the current environment. Comparing the whole market matters more than ever.”