3 Tips if You Are Looking for a Mortgage in 2023?

mortgages in 2023 UK

Mortgages in the UK in 2023

2023 may not be considered a good year for mortgages but that’s not to say you shouldn’t consider applying for one. A lot will depend on your personal circumstances and how much disposable income you’ll have after making your monthly loan repayment.

We can’t be sure what will happen with interest rates over the coming months but we can assume they will rise a little more. This leaves home buyers with a quandary. Do you buy now and lock in a lower rate or do you wait it out and see what happens?

The UK Rental Market

It’s likely that you’re paying as much if not more to rent a property in the UK. Landlords are able to name their price in the current climate which has led to bidding wars in some areas. Renting is a great short term solution and in some cases it’s the only solution, but if you have a mind to purchase your own home at some point, renting can seem like a bit of a money pit.

Five Questions to Ask Yourself before Buying a House

Can I afford it? This may seem like a simple question. ‘Yes, of course I can afford it!’ But being able to make the monthly repayments comes down to other factors. How much is your food bill every week, electricity, gas, broadband? Are those bills likely to rise given the current climate? How much will you have left over if they stay the same? Will you be able to manage if they rise?

Do I Have a Deposit? In general, you will need at least 5% of the value of the house. 100% mortgages are available, but in some cases you may need a guarantor. This is someone that agrees to cover the repayments in the event that you can’t. You will also find that your monthly payments are higher. On a £200,000 for example, you will pay an extra (approximately) £60 p/m.

How is Your Credit History? Do you have a good credit history? You may think ‘That’s fine. I have never had any credit so it’s all good’ but this is not the case. Having no credit means there is no evidence of your ability to pay back a loan. Banks need to be able to evaluate the risk and if there is nothing to go on, they won’t take that risk.

100% Loan Example: Skipton Building Society has launched its 100% “Track Record Mortgage”. It’s available to first-time buyers only, aged 21 years old and over, who have a provable track record of renting for at least 12 months in a row during the last 18 months and a clean credit history.

In any case, it’s always worth talking to a mortgage broker about 100% mortgage options as each lender has it’s own policy.

If you have any questions regarding applying for a mortgage in the UK give us a call or send us a message.

Share this article:
Other recent news articles
1.9% percent summer price drop as stretched affordability begins to improve

1.9% summer price drop as stretched affordability begins to improve

Asking Prices –  Rightmove Data Rightmove’s latest data shows average new seller asking prices fall by 1.9% (-£7,012) this month...

Asking rents hit new record says Rightmove. Is now the time to buy?

Rental Properties Hit and All Time Price High Latest data from Rightmove says average asking rents for new tenants outside...
The mortgage market is still busy despite rising interest rates

The mortgage market is still busy despite rising interest rates

UK Mortgage Market Update The mortgage market is still busy despite rising interest rates. Enzo Mora CEO and founder of...
Speak to one of our mortgage experts
Enter your number below to schedule a callback with one of our team.*
Now choose your preferred day and time
Excellent service, highly recommended. Great communicators and very helpful for us as first-time buyers.
Always there to help with helpful and honest advice, would recommend to anyone. We are first time buyers and they really helped with simplifying all the jargon and giving us great advice.
Chris M
Great communication and customer service throughout the process.
A very helpful, trustworthy and straight,-talking service that got us the result we wanted.
First time buyer
Very informative personnel, happy to help and easy to communicate with. I would definitely recommend.
Excellent service! Couldn't ask for.more. thank you so much !!
Mr&Mrs Martin
Request a
call back
Preferred day*
Preferred time*

Arrange a callback

Please complete the form below and one of our specialist mortgage advisers will call you back.
Preferred day*
Preferred time*

We use cookies on this website. You are free to manage cookies settings via your browser at any time. To learn more about how (and why) we use cookies, take a look at our Privacy Policy.