Throughout March, ever since the conflict in the Middle East commenced, mortgage rates have been climbing. Almost daily, lenders have been declaring they are raising their rates, in many instances quite substantially, as markets factor in higher interest rates to control inflation.

On some occasions, major high street lenders have announced multiple rate rises in under a week. Against this backdrop, many prospective first-time buyers will have decided to postpone their plans.

But one mortgage broker, Michelle Lawson, director at Lawson Financial, said this was the wrong course of action – and a missed opportunity.

Michelle said: “People’s logic is that mortgage rates are now much higher than they were at the end of February, so why would it make sense to buy when borrowing costs a lot more? In their head, they’re thinking ‘surely it’s better to wait until rates come down?'”

But this logic, Michelle said, doesn’t take into account two key things: “Firstly, it ignores the fact that mortgage rates may not come down for some time if the Middle East crisis intensifies and significantly drives up inflation via rising oil and gas prices – and, of course, the fact that rates may even climb even higher.

“But secondly, and crucially, it ignores the fact that events in the Middle East aren’t just driving mortgage rates up, but are also driving demand – and sentiment in the property market – down.”

It’s this erosion of sentiment and demand that presents an opportunity for purchasers, Michelle said, despite the fact that rates are now substantially higher than they were just a few weeks ago.

She added: “When demand and sentiment in the property market are weak, the balance of power immediately favours first-time buyers, who can negotiate extremely hard on the asking price of the property they are interested in. Knowing that sellers are on the back foot due to reduced demand means they can offer thousands or potentially even tens of thousands of pounds under the asking price.”

Michelle said the seller is far more likely to take the offer seriously than when mortgage rates were lower because they know that it could be some time before they get another offer in the current economic climate.

She added: “Essentially, first-time buyers can more than make up for the higher interest rate on their mortgage through the reduced price they pay for the property they’re keen on.

“The challenge for first-time buyers is to see the purchase of a property in its entirety rather than focus solely on the mortgage rate that they can get, which so many often do.

“A good mortgage broker will show first-time buyers the numbers underpinning this and reinforce how a higher mortgage rate on a property secured at a lower price can work out cheaper than a lower mortgage rate on a property that is purchased at asking price.”

Ultimately, the message is that first-time purchasers should not be deterred from the housing market simply because borrowing costs have increased, but rather capitalise on the fact that they, in numerous instances, now possess all the leverage.