UK Mortgage Advice..
impartial and without obligation
The UK base rate is at an all time low of 0.5% and property prices have fallen, on average, about 20% since their peak in October 2007. We ask, is now a good time to buy or re-mortgage?
First Time Buyers:
A deposit is key, the more the better since 100% mortgages may never return. House prices could be approaching a bottom, so negotiate a discount and with interest rates at a low now could be a great time to buy.Home Movers:
Be prepared 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. Interest rates will eventually go up, get a medium to long term fixed rate now and this could prove to be a smart decision.Re-Mortgage Customers:
Falling house prices and a reluctance of lenders to offer the best deals for all but those with 40% equity probably means you have not moved your mortgage. Falling interest rates have worked to your advantage but we know they won't always stay this low. You should now be considering a medium to long term fixed rate as the best deals will disappear before the recovery comes.Key Considerations:
Interest rates are unlikely to fall any further...
0.5% is as low as
it's gets. A variable rate mortgage makes little sense when a fixed rate
costs little more. Sooner or later interest rates will increase and if
you choose a tracker or variable rate mortgage then you will see your
mortgage costs increase too. Bear in mind, fixed rates will increase before
the Bank of England starts to put interest rates up (this is already
happening), if you're looking to remortgage now then act quickly.Property prices have fallen about 20%
since their peak in October 2007. They may fall further but supposedly, there is a shortage of houses, so with lower property prices and cheaper mortgages they may not fall much further. Bargains may soon exist.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 in value.Redundancy is a worry for many people.
Redundancy cover could protect your mortgage for 12 months. Life assurance and income protection are also very important. Should an unforeseen situation occur (redundancy, death, illnesss) an insurance policy could make the difference.Talk to us, free on 0800 01966 26 to discuss your options and find a mortgage deal that is right for you.