Halifax: “Price increase is good news for existing homeowners, but the news is more mixed for first-time buyers”, Trussle

Ishaan Malhi, CEO and founder of online mortgage broker Trussle, said:

“The picture has been fairly blurred in recent months but all indicators now seem to agree that prices are creeping up again. This is clearly good news for existing homeowners, who will see more than just the value of their home increase. Their share of equity will also grow, meaning they could be eligible for more competitive mortgage deals when they come to remortgage in future.”

“The news is more mixed for first-time buyers. Those who are ready to buy will likely see the growth in house prices more than made up for by the new stamp duty savings. For those unable to buy just yet, the prospect of further interest rate rises won’t help.”

“With this in mind, buyers should use the New Year as an opportunity to put a saving plan in place, cutting costs where possible. Once in a position to apply for a mortgage, there are further ways of bringing down costs, such as using an online broker that doesn’t charge fees. Brokers are typically able to access a far wider range of deals than going directly to a lender, so it’s more likely they’ll be able to find a more competitive rate.”