Mortgage Advice

Tight Lending Criteria
Is making it very difficult to get a competitive mortgage and the number of people being declined has risen sharply in the last year. It has never been more important to seek advice.

First Time Buyers:
Deposit is key, the more you have the better the rate. House prices could be bottoming following encouraging news from both Nationwide and Halifax. There has also been good activity from first time buyers in recent months. Now may be a good time to buy but proceed with caution, further falls cannot be ruled out.

Home Movers:
You may have to accept less for your property but expect to pay less for your purchase. If you're moving up the ladder then the differential will be in your favour.

Re-Mortgage Customers:
Falling house prices have reduced the equity in our homes and lenders have been unwilling to offer the best rates unless there is 40% or more equity, signs are that this is beginning to change as higher loan to value deals become available. The best rates are still reserved for those with 30%+ equity. House prices could still fall further and interest rates are likely to rise in the new year, consider your mortgage options early. Call us for details of available mortgages.

Key Considerations:
Interest rates can only go up
The next movement in interest rates will be up, although the rise may not be as rapid as the decent. Fixed rates make sense to keep a lid on your payments but they have increased over the summer and variable rates look a viable option once again - providing interest rates do not rise too quickly. Short term - consider variable, 2 years+ consider fixed.

Property prices have fallen about 25%
They may fall further if predictions of a second wave of the recession materialises next year. For now, good news from both the Nationwide and Halifax suggest house prices have stabilised.

Loan to Value
This is your mortgage as a percentage of your property's value. Lenders price their mortgages more competitively on lower loan to values because there is less risk of losing money should they have to repossess. Falls in property prices are pushing people into higher loan to value brackets and this is increasing mortgage costs. Delaying a switch to a better deal could result in a higher loan to value if your property falls further in value. Interest rates are also likely to increase, so it makes sense to consider your options sooner rather than later.

Talk to us on 01633 480197/01633 263524 to discuss your options and find a mortgage deal that is right for you.