People who have a sizeable deposit should go ahead with their mortgage applications, suggested an expert.
Stuart Inman, director at MyMortgageDirect, said that it was a "reasonable" time to buy a property.
However, he added that people with small deposits will find it significantly difficult to find their footing in the property market.
This is because potential buyers with deposits of less than 15 per cent would be likely to incur a high mortgage rate, he added.
Commenting on the comparison between buying a house and renting one, Mr Inman said: "It is not quite as straight forward comparing the two when you take into account the other costs."
He was responding to the publication of a recent research by Santander Mortgages which claimed that people could save a lot more by living in purchased homes rather than rented ones.
The report claimed that families living on the outskirts of London could save an average £1,040 every year if they opted to buy the homes that they were living in.
With the exception of London, the average rent across the UK is estimated at a little more than £420. In comparison, first-time buyers usually pay back £334 every month for mortgages on their homes, which was £86 cheaper than paying rent according to Santander Mortgages.
In addition, Ray Boulger, senior technical manager at John Charcol, pointed out that at present the number of mortgage products that allowed people to borrow up to 80 to 90 per cent of the total value of the property had increased significantly.
It is also hoped that the property market will see a boost in business following the expected decrease in the stamp duty limit to £250,000 for first-time buyers.
However, it was recently reported by FinadaProperty.com that June recorded a 0.2 per cent rise in prices for entry-level homes.  |
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