Interest rates are down, buyer numbers are up – top London tips to make the move

With inflation rates down and mortgage interest rates starting to fall, now could be the time to seize the moment and buy a new home in London. The recent cut in the bank base rate has prompted a massive increase in people looking to move – Rightmove reported that the number of people looking for a new home has jumped 19% since this time last year1, following the first cut in the base rate since 2020, while Knight Frank noted an 11% rise in viewings for London properties in the first week of August following the base rate cut2.
With the pool of available properties in the capital being limited, those who are considering buying might want to push forward with their plans, before the best buys are gone and prices start to edge upwards at a more rapid rate. With this in mind, Barratt London has put together its top tips to help turn homeownership dreams into bricks and mortar reality.
Prepare to succeed
If you are considering buying a new home at any point in the next couple of years, you need to start preparing sooner rather than later. Saving for a deposit needs to be a priority – every pound you can put away will make it easier to take the first step on to the housing ladder and into a home of your own. Try to set a monthly savings budget and put the amount straight into an account with the best interest rate you can find. If you are between 18 and 40 you can even make the most of up to £1,000 free each year from the Government towards your deposit by using the Lifetime ISA, which boosts every pound up to £4,000 you save by 25%. You can buy a home valued at up to £450,000 using the scheme, which would enable you to buy at some of Barratt London’s most popular developments, including Hendon Waterside, Wembley Park Gardens, Springfield Place and Hayes Village.
It is also a great time to make sure that your credit rating is as good as it can be, as this will give you access to the best mortgage rates – all lenders will check your credit score with one of the major reference agencies, such as Equifax, Experian or TransUnion, to find out how financially responsible you are thought to be. You can check your rating with these organisations free of charge, and if it is poor, take action to improve it. This could include making sure you are on the electoral roll, clearing up any overdue bills or debts, making sure that you live well within your means, or perhaps taking out a “credit builder” credit card or mobile phone contract to prove you are responsible.
Talk to the Bank of Mum & Dad
If you are lucky enough to have a supportive family, then talk to them about your house buying plans. At Barratt London we have found through our research that over a quarter (27%) of parents are prepared to help their children buy a home, and this can be especially important for first-time buyers, 60% of whom see financial contributions from parents as vital to enabling them to step on to the housing ladder.
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2/… While gifted deposits are the most common form of support, where parents or other close relatives give money as a present, with no strings attached, there are other ways that parents can help if they can’t afford to give cash away. For example, some lenders allow parents to put money into a savings account that is linked to their child’s mortgage, facilitating a deposit-free loan. As long as the mortgage is paid, the parents keep the money and interest. Similarly, parents can act as a guarantor, or be added to a Joint Borrower Sole Proprietor mortgage, to allow the first time buyer to borrow more. In all these cases, providing you keep up with the mortgage, there will be no cost to parents.
Look at no-deposit/low-deposit mortgages
For buyers who are struggling to find a deposit, 95% mortgages are increasingly widely available, and a number of lenders, including some High Street names, will now loan this amount on new build apartments.
Barratt is also part of the Deposit Unlock scheme, which enables both first-time buyers and existing homeowners to purchase a property with only a 5% deposit, but provides an insurance-backed guarantee that means they can access a 95% mortgage with better rates. It’s available on new build homes, including apartments, and can be used on selected homes up to the price of £833,250. Speak to a sales advisor at any of our developments to find out which homes are available through this scheme.
Make the most of buying schemes
At Barratt London we know how hard it can be to save for a deposit, so we have a number of schemes that can boost what you have already saved – speak to a sales advisor to see which developments and properties are included. Schemes include:
· Key Worker Deposit Contribution – our expanded scheme offers key workers, (including NHS, teachers, emergency services, foster carers and many others) a contribution of £1,000 for every £20,000 spent on the purchase price, plus free flooring.
· Deposit Boost – with this scheme, we’ll top your 10% deposit by a further 5% of the sale price, giving you a 15% deposit in total. This way, you’ll be able to borrow less from the lender and secure a more competitive mortgage rate.
· Armed Forces Deposit Contribution – we offer Britain’s military servicemen and women a 5% deposit contribution to help them buy a brand new home.
· Own New Rate Reducer – with this scheme, we contribute 3-5% of the purchase price to your mortgage lender, reducing your mortgage interest rate by up to 3.19%.
· First Homes – a limited number of properties on selected developments are available at up to a 30% discount as part of the Government scheme to help lower income first-time buyers.

Consider buying off-plan
Buying a home off-plan – before it is actually built – can help you make the most of a small deposit, as there is only a small initial deposit, then the whole build period to save up more, as well as the fact that you are locking in the price which would otherwise likely rise as the area is regenerated. Irish and Jayson, who bought a Barratt London home at Sterling Place, explain how it worked for them:
“When we heard about Sterling Place in New Malden it initially felt out of reach. A real draw for us was how spread out the deposit payments are when buying off-plan. Usually, properties require a 20% deposit to secure, which we simply wouldn’t have been able to afford in one go. We now have until February 2025 to pay the next and final 5% instalment of our deposit. The distance between payments makes it more manageable and made our decision that much easier.”
See an independent advisor
To make sure you find the best solution for your situation, seek out professional advice. Yolanda Jacob, Director of Sales and Marketing at Barratt East London, said: “We would recommend that customers talk to a mortgage advisor who can look at all of the options available and find one that suits their circumstances. Prospective buyers who fear that purchasing their own home was beyond them – because of barriers such as saving for a deposit – could find that mortgages are cheaper than they had expected. They might also be able to borrow more than expected by opting for the security of a long-term fixed rate mortgage, which could enable them to borrow up to six times their income.  Added to that, there are lots of incentives on the market currently to enable buyers to purchase a new home.”
Your own bank or building society might only have a handful of different mortgages, but if you consult an independent financial or mortgage advisor, especially one who specialises in new build properties, they could have access to 12,000 different mortgage products. Charges are generally affordable, and seeing an expert can result in big savings, or even finding a suitable mortgage if you are struggling. As well as finding the right lender for every circumstance, an advisor can guide you through the different types of mortgage available, including extra-long 40-year terms that can keep monthly costs down while you establish your career.
Stay positive
It can seem overwhelming, but buying your first home in London could be within your grasp. While prices may be generally higher in the Capital, there are regeneration hotspots where property is still surprisingly affordable at the moment. At the newly released Fenton Apartments in Eastman Village, Harrow, for example, an energy efficient one-bedroom apartment with balcony could be yours for just £359,000, Hayes Village offers canal side apartments from £350,000 and Bermondsey Heights offers excellent value in Zone 2 with homes for those eligible for First Homes starting from £306,600 and £455,000 outside of the scheme.