A mortgage expert has warned potential homebuyers that waiting for the perfect time to buy could cost them thousands
A mortgage expert has warned that sitting tight is the wrong strategy for buyers at present, with those who delay risking a “double cost”.
That’s because both property prices and mortgage rates could rise simultaneously, he said. According to broker Rohit Kohli, many prospective homebuyers have spent much of 2026 biding their time on the sidelines, holding out for mortgage rates to drop.
However, with inflation remaining stubbornly high and financial markets growing increasingly turbulent, he cautioned that this approach was starting to look decidedly precarious. The mortgage market has undergone considerable change since the beginning of the year.
Predictions that rates would gradually decline 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 domestically and abroad. With numerous lenders beginning to reprice mortgage products upwards once again, buyers are left 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 is assuming there will 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 sits at 3.75%, fixed-rate mortgages are primarily influenced by swap rates and long-term inflation forecasts rather than the current base rate alone. With inflation climbing back to 3.3% and markets increasingly factoring in the likelihood that rates may remain elevated for longer, Kohli warned that holding out for cheaper borrowing costs could prove counterproductive.
He continued: “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, property prices have stayed relatively robust despite affordability challenges. According to Halifax, the average UK home now costs just under £300,000, with both Halifax and Nationwide anticipating prices will remain largely stable throughout the coming year. Mr Kohli cautioned that purchasers who postpone could encounter a “double cost” if both property values and mortgage rates climb simultaneously.
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 more than most people had anticipated. Lending conditions have relaxed considerably 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 headlines.
Mr Kohli continued: “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.”
