Mortgage expert Rohit Kohli has warned that prospective homebuyers who delay their purchase risk facing a 'double cost' if both property prices and mortgage rates rise simultaneously. Many buyers have been waiting for rates to drop, but with inflation remaining stubbornly high and markets volatile, this strategy is becoming increasingly precarious.
Expectations of gradually easing rates in 2026 have been disrupted by rising inflation, higher oil prices linked to the Iran conflict, and political uncertainty. Several lenders have begun repricing mortgage products upwards, leaving buyers questioning whether postponing a purchase could leave them worse off.
Kohli, director of The Mortgage Stop, said buyers often assume there will be a 'perfect' moment to buy, but markets rarely move in straight lines. He cautioned that waiting for low rates, falling house prices and economic stability simultaneously is usually unrealistic.
While the Bank of England base rate remains at 3.75%, fixed-rate mortgages are governed by swap rates and long-term inflation expectations. With inflation at 3.3%, Kohli warned that holding out for cheaper borrowing could prove costly. House prices have remained resilient, with the average UK property costing just under £300,000 according to Halifax.
Kohli emphasised that affordability has improved, with lending criteria relaxed and first-time buyer activity climbing in 2025. However, he advised buyers to focus on what they can comfortably afford today, build a financial buffer, and seek expert guidance rather than relying on headline rates.
