With fewer lenders offering high loan-to-value mortgages and property prices expected to drop in many areas, John Charcol has urged first-time buyers especially carefully reconsider the decision to buy a property at the moment. “Unless household income is strong enough for a good amount of capital to be paid off monthly, there is a risk of falling into negative equity if buying without a decent deposit,” said Katie Tucker, spokesperson for John Charcol.

In terms of current homeowners, Tucker added: “It is important that existing borrowers who are due a remortgage do not panic, but instead take a whole-of-market broker’s advice on what is now available to them, and absolutely prioritise monthly affordability of any new deal, to ensure they don’t fall into financial difficulties.”

With inflation reaching a nine-month high in February, an interest rate cut could be a long time coming as well, according to Tucker. She continues: “For borrowers, this means that while more interest rate cuts are needed, to stimulate growth in the economy, inflation has to be held down so we may have to wait at least until May before mortgage rates are reduced again.”