| It seems like the cost of everything is going up each time we go to the shops! With 10 consecutive increases to the base rate, and wage rises not keeping up with inflation, many are currently concerned about how to meet their monthly outgoings. This includes mortgage payments, which for most will be their largest outgoing. Millions will also be coming to the end of their current mortgage deals during 2023, and are facing big decisions on what to do next. Affordability can be even more daunting for First Time-Buyers looking to make that huge financial commitment, and it may feel like your dreams of owning a home are out of reach.
That’s why speaking to an expert mortgage adviser is even more important than ever! We can search the whole of the market to find you the cheapest deal for your circumstances, but just as importantly, we can find you solutions. We have access to lenders and product ranges customers cannot access directly, and perhaps have never heard of, some of which are aimed specifically to help where affordability is tight. A few examples of what can be done with lenders on our panel – up to 6 applicants allowed on the mortgage, multiple sources of deposit, increased maximum age to allow an extended term, or preferential rates aimed at certain professions or energy efficient properties. We can talk you through other options which may enable you to purchase such as Shared-Ownership, guide you through the mortgage process from start to finish, and help you to anticipate other costs involved so you are fully prepared.
Last week, we saw the Bank of England base rate rise again, and it now stands at 4%. The positive news is that this time, most lenders had anticipated this and had already factored it into their pricing. This means we don’t expect to see them increasing fixed rates dramatically in the coming weeks. In fact, we have seen lenders gradually reduce rates since the highs following last years’ disastrous mini-budget. It is predicted rates will peak and plateau, rather than continuing to reduce, and it’s extremely unlikely they will reduce to the lows of late 2021/early 2022. The flip side of the base rate announcement is that if you are on a tracker mortgage, your payments will increase, and lenders will also start to increase their variable rates, so those who are on discounted rates or have gone onto their lender’s standard variable rate already will also be affected.
If you have been holding off to see what happens with the markets, you may not need to wait, particularly if you are coming to the end of an existing deal! You may not be aware that many (although not all) mortgage lenders will allow you to switch to another product before completion. This means that we could apply and secure a rate for you now, but would continue to monitor the lender’s products, and should they reduce their rates, switch you to a cheaper deal. If you are considering a tracker mortgage, we can also search for deals with no early repayment charges for you, so that you could apply to switch to a fixed deal at any time without penalty should you change your mind.
If you would like to discuss your options for purchasing a new property, remortgaging, or raising funds through a further advance or second charge on a current property, give us a call on 01702 538800 or email enquiries@ingard.co.uk and we will be happy to have a chat to see how we can help.
If you are having difficulties making your existing mortgage payments, please speak to an adviser, and get in contact with your lender sooner rather than later. |
