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Why now is a good time to buy a house?

James Adams

9 September 2020

James Adams

9 September 2020
husband and wife looking to buy their next home

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    Why is now a good time to buy a house?

    I have two children. They’re 8 and 4 and absolutely bonkers. But, despite the tantrums, the early morning starts and the relentlessness of the morning school run – I love them. Having kids, for me, turned out to be a great decision.

    As you might imagine, given what I do for a living, there was some planning and forethought that went into the decision to have children. The main conversations between my wife and I were not actually about IF we have children, but WHEN we will have children. And we came to realise that the time would never be perfect. The reality is, if we looked hard enough, there would always be a good excuse to delay, to push back, so say “not right now.”

    The same can be said for buying a house. It’s big decision and takes a lot of consideration. However in the UK, it’s common that the conversation isn’t IF you’ll buy a house, but WHEN. And if you’re reading this blog, it sounds like you’re well into that thought process already.

    You may already own a house, and you’re looking to move. Maybe you need more space. Maybe the kids have grown and fled the nest you need less space. There are a million reasons why you might be looking to buy or move house.

    how much can you borrow for your next home

    3 reasons why now might not be such a bad time to buy! 

    1. Interest Rates are low
      Interest rates are as low as they’re ever likely to be. This means that borrowing on a mortgage will be as cheap as it’s ever going to be. So taking out your first mortgage, or perhaps borrowing a little more to get the next house up on the ladder may just be that bit more affordable.
    2. People Are keen to Sell
      People are really keen to sell, so things will move quickly. It’s true that there are more people looking to buy than there are looking to sell. We’ve seen the annoyance it can cause when so many people want to buy but there aren’t enough houses. But if you do find the house you want, the process isn’t taking long now as people are keen to get the deal done, and get moving in their next house.
    3. 95% loan to value mortgages
      95% loan to value mortgages are back on the market, meaning if you don’t have a very big deposit, there are still options to help you get on the property ladder.

    If you want to know what you can afford to borrow, and therefore how much you can spend on a home, click here: https://mysimplemortgage.co.uk/what-can-i-borrow/ and find out immediately what you can borrow, from a real lender. 

    While hardly a surprise given the lockdown caused by the pandemic, Halifax confirmed at the beginning of July, that overall, house prices had fallen four months in a row. This was the first time house prices had shown a decline since 2010.

    Summer is usually a quiet time for house sales, but following the COVID-19 pandemic, July saw a massive £37 billion worth of property sales as went up, demand was released as the lockdown was eased. According to Rightmove, this has been the busiest month for home buying for over ten years. Also due to the quarantine issues, fewer people have been going on holiday abroad and instead had more time to consider buying their next property.

    Government Initiatives

    Because of the government initiatives below, there are now greater incentives to buy a property in the current climate.

    Stamp Duty Holiday

    The stamp duty holiday will last until the end of March 2021 and applies for homes worth up to £500,000. It means that you could save up to £15,000 and potentially put that towards a deposit. This covers England and Northern Ireland. As for Wales and Scotland, this would apply for homes up to £250,000.

    Help To Buy Scheme Extension

    On the 31st July, the government announced that thousands of families can still benefit from the current Help to Buy scheme, despite delays in building their new homes due to coronavirus. Under the current scheme, new homes would need to be finished being built by the end of December – the extension will mean the deadline will now move to 28 February 2021. However, the deadline for the legal completion of the sale will remain the same – 31 March 2021.

    Please note that this announcement that schemes in England, which has been initiated by the UK Government, may not be similar to schemes in Northern Ireland, Scotland or Wales.

    Insulation Scheme

    This applies to both homeowners and landlords. A £2 billion insulation scheme has been announced by the government as part of a bigger project that intends to cut emissions across the UK. In this scheme, homeowners will receive financial incentives in the form of vouchers of up to £5,000 for improvements that will save energy. Some of the poorest households might be able to receive up to £10,000 in vouchers.

    The scheme could mean saving hundreds of pounds each year, many homes are expected to save as much as £600 annually. The programme will start in September and will include an extra £1 billion for public buildings like schools and hospitals to spend on insulation, efficiency and green heating technology.

    The initiative aims to help the UK meet its net-zero emission targets by 2050. It also intends to help the many properties struggling with cold and damp, as many homes in the UK are among the oldest in Europe (and many properties in the rented sector tend to be colder than others). Humidity and cold are also hazardous to people’s health, so it’s not just wallets that are expected to benefit from this scheme.

    If you are struggling to get a mortgage due to being furloughed, perhaps you are self-employed and not sure if you can afford a to buy a house right now, maybe you simply want to remortgage. Whatever your circumstances are, get in touch with us to discuss your options. We are here to offer you the support you need.


    James Adams

    James Adams


    Founder & Co-Director, My Simple Mortgage. Has helped thousands of people purchase their first home. Dreaming up ways to change the norm and challenge the status quo.

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