Falling inflation is a 'win' for first-time buyers but experts warn of 'shaky' times ahead for existing homeowners

UK inflation has eased to 3.2 percent, according to the latest Office for National Statistics figures. The Consumer Prices Index (CPI) inflation fell from 3.4 per cent in February to 3.2 per cent in March, meaning the rate is now at its lowest since September 2021.

Although easing inflation does not guarantee an immediate interest rate cut, it is said that the Bank of England will acknowledge that lower inflation figures are heading in the 'right direction of travel’, with economists tipping a summer rate cut as early as June, whilst others expect interest rates to drop in August.

If this is to happen, then it will be great news for first-time buyers hoping to take their first steps onto the property ladder this year. With interest rates directly influencing mortgage rates, many new homeowners will likely be able to find better and cheaper deals when it comes to buying later this year.

READ MORE: UK inflation falls to 3.2 per cent - what it could mean for interest rates

In response to today's inflation figures, Jonathan Bone, Mortgage Lead at Better.co.uk, said: "Declining inflation is a win for first-time buyers and homeowners who are remortgaging this year. The Bank of England may now consider reducing the base rate sooner rather than later, which could give mortgage lenders an incentive to offer more enticing deals.

“Those looking to climb the property ladder may be hesitant to take the next step, hoping interest rates may fall, but there's never a perfect moment to buy a home. Don't let the pursuit of potential savings mean you miss out on your dream home - mortgage offers typically last between three to six months, giving you the flexibility to switch to a better rate if interest rates are cut later this year."