Around 19 per cent of renters say high mortgage rates are crushing their ability to buy now or have put their buying plans on hold completely, research has found.
According to a survey from The Mortgage Lender (TML), which collated views of 2,000 adults, around 12 per cent said they would continue renting until prices fell.
Around 10 per cent said that they would wait for mortgage rates to fall and nine per cent agreed that there was no point in looking to buy until mortgage rates decrease.
Nearly six per cent said they were waiting until the Bank of England’s next base rate decision before making a decision.
Predictions from analysts currently estimate that the base rate could rise to 6.5 per cent.
Around six per cent said they were progressing with their home buying plans and were making “significant compromises” to do so.
A quarter of those planning to buy said they were buying away from traditional commuter towns and nearly a third had to move further from the city centre.
Around 16 per cent were buying in cheaper locations to combat affordability constraints.
Approximately one in five said they are buying a cheaper property with more renovation needed and 12 per cent have chosen smaller properties.
Steve Griffiths, chief commercial officer at TML, said: “The journey to buying a property can be a long one, and it can easily be complicated by the ebbs and flows of the housing market, particularly when we consider the current landscape.
“Although being adaptable and regularly checking in on the base rate will serve renters well in the long term, it’s understandable that so many are feeling frustrated by their options.”
He continued: “This really highlights just how vital it is to speak to a broker early about your property ambitions. They can help breakdown how much you can afford, as well as any other available options. If it’s not the right time to buy now but you still plan to in the future, buyers need to work toward becoming ‘mortgage ready’.
“This will ensure when the time is right you are prepared to take that next step. Even in challenging times, potential buyers should remember that there are lenders that can support them, and a broker will be key in being able to help find the best deals.”
Source: mortgagesolutions.co.uk