Mortgage News Update

12-03-10

Now is the time to consider your remortgage options.

Over the last year, many borrowers have been fortunate enough to take advantage of their lenders very low Standard Variable Rate (SVR) after coming to the end of a particular mortgage deal. Recently the remortgage market has become more competitive with lenders trying to entice borrowers to switch to them and take advantage of lower interest rates.

Remortgaging should certainly now be a consideration for mortgage holders. Lenders are making this switch more attractive by offering to pay valuation and Solicitor fees on your behalf. Currently rates are staring from 1.99% therefore providing excellent value. It would be a worthwhile exercise to consider your current mortgage position and discuss your options in more detail and review the whole mortgage market. Fixed rate remortgages should now be considered as long as you are free of any early repayment charges with your current lender.Fixed rate remortgage products currently start from 2.89% offering monthly financial stability. It is true to say that I have not seen fixed rates as low as this before and I don’t expect them to be available at this level for too long.

Make a decision based upon full advice relating to your own circumstances. Don’t just follow the crowd because…


05-03-10

Looking to buy a property? Arrange your mortgage first.

Buying your new home can be a very exciting time for you and your family.It is important that you enjoy this process and consider all of your requirements. Some people are fortunate enough to be able to buy their new home without the need for a mortgage, unfortunately though, most of us need some mortgage support.

My experience over many years has shown me that a buyer approaching an estate agent with formal mortgage approval is generally more likely to have a realistic offer accepted by a vendor. You need to place yourself in the estate agents shoes and understand that they will want to qualify you and your finances before being confident in your proposed offer to buy. They have an obligation to the vendor to ensure that you are “good for the money”. Gaining formal approval on your mortgage before visiting the estate agents is essential. You will be able to show the agents a mortgage certificate confirming your mortgage funds have been accepted.

Your initial mortgage homework will provide you with the confidence of mortgage affordability. You should not start to look for a property until you have your finances agreed. Avoid disappointment!


26-02-10

90% mortgages from 4.99%

The last 18 months have proven to be very difficult for anyone wanting to buy with a limited deposit. For a while there were only a few select products on the market offering 85% - 90% borrowing. Thankfully over the last six months, 85% products have become more widely available showing good value with competitive interest rates.

In recent months lenders have been offering 90% borrowing at interest rates that could be considered rather reckless, enticing borrowers into 5 year deals without any short term exit strategy. However, I have seen a selection of new 90% mortgages made available by lenders with rates as low as 4.99%. Typically these products are tracker rates so caution must be taken when considering your options.

As I mentioned last week, the expectation is that the Bank of England will start to increase the base rate later this year and in turn push any tracker rates a little higher. I feel that it would be prudent to put money aside every month to cater for these potential increases. This way you can take advantage of lower interest rates now whilst structuring your mortgage in such a way to cover any potential base rate increase. Don’t just think about the here and now – Consider tomorrow as well.


19-02-10

Every week, I will be updating you with the latest news within the mortgage market. My aim is to inform and assist you when considering your mortgage options. Whether you’re purchasing a new home or considering the possibilities of remortgaging, I’ll do my best to provide you with thought provoking information.
Interest rates are now at a historical low and it is an important time to ensure that your mortgage is structured in the most cost effective way.

It is very tempting to pocket those additional monthly savings, with the feeling that it is always going to be this way. Unfortunately, that’s probably not the case. Now is the time to consider re-investing those monthly savings back into your mortgage to reduce your debt. This will help you to clear the mortgage sooner, saving you potentially £000’s in otherwise paid interest.

The expectation is that the Bank of England will start to increase the base rate later this year. It’s very important that you prepare for these potential increases by structuring your mortgage now. You may not even need to switch mortgage products to achieve this.

Always seek independent advice.