Thirty-two per cent of prospective buyers are delaying their property purchase, with the number rising to 36% for first-time buyers, the Mortgage Advice Bureau has revealed.

Research by the network for mortgage intermediaries found that increased housing prices (39%), higher interest rates making monthly repayments unaffordable (29%) and the cost of living crisis (28%) are among the key factors impacting homebuying plans.

The Mortgage Advice Bureau said the challenge of higher interest rates is "significant", with one in four (25%) prospective buyers and 26% of first-time buyers finding it harder to get their mortgage approved due to increased costs.

To tackle these financial pressures, one in five (20%) of prospective buyers have taken on more than one job to cope with the financial strain, while this figure is slightly higher for first-time buyers (22%).

Additionally, one in six (17%) first-time buyers have had to arrange longer mortgage terms than initially planned. The same number also found it necessary to borrow more to afford their homes.

Other contributing factors include the cost of living crisis impacting credit scores, affecting 21% of prospective buyers and 25% of first-time buyers, and concerns over job security or potential redundancies is affecting 12% and 13% respectively.

Deputy chief executive officer at Mortgage Advice Bureau, Ben Thompson, said: "As we navigate the complexities of the current housing market, the impact of higher interest rates cannot be overstated. However, with innovations in the market and light starting to appear on the horizon, there is still a possibility that 2024 can be the year to get on the property ladder.

"Though it isn’t suitable for all applicants, mortgage products that take rent into account can be very helpful for buyers struggling with the cost of living and the ability to save for a deposit. Likewise, extending a mortgage term to lower your repayments doesn’t need to stay that way. In a few years’ time, you can always remortgage, and shorten your mortgage term.

"It’s also important that buyers don’t try and time the market, as it’s nearly impossible to time the property market at the perfect sweet spot."

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