With the children heading back to school after a long (and often expensive) Summer break, you may be looking to re-assess your finances. Your current mortgage deal may be coming to an end, or you might be looking to raise additional funds to consolidate debts or make improvements to your property. Or, maybe you’re looking to move, or purchase your first home in time for Christmas.
There is plenty of good news if you are looking for a mortgage now!
Of course, interest rates are still higher than they were 3 years ago. However, many lenders have been reducing their rates across both residential and BTL products in recent weeks, with a few high street lenders launching sub 4% rates (for low loan to value mortgages). We are also starting to see an increase in mortgage approvals following the base rate cut in August. Buyer demand is up 20%, but supply is at a 7-year high, giving buyers greater choice and hopefully keeping house price inflation in check.
Last week, Keir Starmer warned that the Autumn Budget would be “painful”, potentially laying the ground for incoming tax rises. He also said that those with the widest shoulders should bear the heaviest burden, fuelling rumours around increases to capital gains tax and/or inheritance tax.
We will have to wait until 30th October to see exactly what measures are announced, and whether this will have an impact on interest rates, criteria or lender’s affordability calculations. However, our advisers will be on top of the latest news and lender reaction as it comes, and can source the most up to date deals from the whole of market, to ensure we find you the most suitable option. The Bank of England will then review the base rate in the week following the budget on 7th November, and this will give a good indicator of market confidence going forward.
Don’t forget; if we secure a rate for you now, most lenders will allow us to switch you to a lower rate prior to completion, should they change their products. This gives you the peace of mind that you have something in place if rates were to increase, but that you wouldn’t miss out if rates reduce during the process.
If you would like to discuss your mortgage options with one of our advisers, please get in touch on 01702 538 800 or email enquiries@ingard.co.uk
