Should I buy a home now or wait in 2026?

Buying now means accepting higher borrowing costs than a year ago, but waiting may not lower them. Bank Rate rose to 4% on 5 November 2026, and mortgage rates are at a three-year high. This guide sets out what the research shows and what to do about it.

Should I buy a home now or wait?

Waiting is a gamble on rates, not a safe choice. The Bank of England expects inflation of about 5% by mid-2027 and says more rises are possible if the energy shock continues. Moneyfacts said economists expect another 0.25 percentage point rise by February 2027.

Prices are not falling sharply either. The median price in England and Wales was £500,000 in the 12 months to 31 August 2026, up 2.0%, according to PropertyTruth's analysis of HM Land Registry sales. Growth has slowed, so you are less likely to lose ground on price than on mortgage rates over a short wait.

What mortgage rate should I expect?

Mortgage rates have risen sharply since early September. The average two-year fix rose from 5.59% to 5.97% between early September and early November 2026, according to Moneyfacts. The average five-year fix rose from 5.63% to 6.00% over the same period.

Rates vary by provider and by how much you borrow. Rightmove's averages on 6 November 2026 were lower, at 5.51% for a two-year fix and 5.49% for a five-year fix, so check several sources before you decide.

How rates change with your deposit

A smaller deposit means a higher rate. Loan to value, or LTV, is the share of the price you borrow. A 95% LTV is a 5% deposit. Rightmove's averages on 6 November 2026 show how much a larger deposit saves.

Loan to value (LTV)	Average two-year fix, 6 November 2026	Change on a year earlier
95% LTV (5% deposit)	5.96%	+0.80 percentage points
90% LTV (10% deposit)	5.64%	Not stated in research
60% LTV (40% deposit)	5.06%	Not stated in research

Rates for every LTV band were about 0.8 to 1.2 percentage points higher than a year earlier. Moving from a 5% to a 10% deposit would reduce the rate by almost a third of a percentage point on these averages.

How much stamp duty will I pay?

Stamp duty land tax, or SDLT, is charged in England on the purchase price. On a £350,000 home a standard buyer pays £7,500, and a first-time buyer pays £2,500. Check the current bands on GOV.UK before you make an offer.

1. Standard buyers pay 0% up to £125,000, 2% on the next £125,000 and 5% on the amount above £250,000.
2. First-time buyers pay 0% up to £300,000 and 5% from £300,001 to £500,000.
3. Relief for first-time buyers is not available above £500,000.

What should I do before making an offer?

Use the room to negotiate, and get your finances ready first. Zoopla says buyers have more choice and room to negotiate, particularly in southern England where prices are falling. Asking prices are not sold prices, though. Rightmove's national average asking price was £371,015 in October 2026, and sellers may accept less.

• Speak to a mortgage broker before you view homes, so you know the rate and loan you qualify for.
• Compare two-year and five-year fixes, and ask about fees as well as the headline rate.
• Check the stamp duty on the actual price you plan to pay.
• Look at the sold prices for similar homes in the area, not only the asking prices.

What is the cost of waiting?

Waiting can cost more than it saves. Moneyfacts estimated that a higher two-year fix costs almost £170 extra each month compared with January 2026. That is a cost you would carry for the whole fixed term.

This is general information, not personal advice. A mortgage broker or independent financial adviser can work out what you can afford and which product suits your circumstances.

Frequently asked questions

The answers below summarise the figures above. Check the sources before acting on any single number.