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In 2024, mortgage intermediaries (such as us) are expected to account for 89% of all mortgage lending.
(Source: IMLA, December 2023 release)

Over the last couple of years, many of us have had to hold back from implementing plans such as house moves, or undertaking major property renovations.

The improving climate in 2024 may spur some of us on to put in place those plans.

Of course, for the 1.6m borrowers who will be remortgaging in 2024*, that positivity may wane slightly when they come to remortgage onto (what’s likely to be) a higher interest rate. For example, those borrowing £100,000 over 30 years might see their monthly payments jump by almost £200.
(Sources: moneyfactscompare.co.uk, 2-year fixed rate comparison, February 2024; *UK Finance, August 2023)

So why the positivity?

A number of factors have come together to create a more encouraging environment.

A reducing level of inflation; a hold on the Bank of England’s Base Rate rises; house prices not falling markedly and a renewed enthusiasm amongst lenders to compete for your business.

Mortgage deals on offer from Lenders

Let’s focus first on this element. We’ve had a period where there’s been a price war amongst lenders. This has helped to push down the rates on offer. However, that’s cooled slightly and currently we’re largely seeing deals on offer that are being pulled and re-priced upwards.

Part of this is down to the impact of Swap Rates. This is a term you may not be familiar with, but it’s Swaps that have a big influence on the pricing of fixed rate mortgage deals.

In some cases, lenders will obtain a tranche of money at a particular swap rate, and once used up, they may have to reprice deals to reflect the future rates they obtain.

The rate for Swaps had been falling since the middle of last year. Hence the improved deals that have been on offer over the last few months. However, due to various market factors, Swaps are currently on a slight upward path, and for some that may translate to higher borrowing costs.
(Source: Chatham Financial, Swaps data, February 2024)

The second element is that we’re in a marketplace where year-on-year mortgage lending fell 28% in 2023, and it is expected to be a further 5% lower this year.
(Source: UK Finance, December 2023)

This contraction of the marketplace has fuelled enthusiasm amongst a large number of lenders to fight for market share.

The combination of these factors is why we’re seeing a state of flux in the deals on offer.

This issue alone is reason enough to turn to us to help make sense of it all.

But we offer so much more

Not only are we up-to-speed on all the aspects mentioned above, but we can deliver support in the following areas too:

– There at the outset. Do talk to us early in the process, such as 6 months before your current deal period ends, and also ahead of looking to purchase a home. This is because we can provide pointers on what you may be able to borrow, in light of what’s on offer from lenders. At the same time, we can consider the affordability issues you may face, plus factor in how creditworthy you may be.

Additionally, once we take up a deal rate on your behalf (within 6 months of the existing one coming to an end), we can still switch it to a better rate (on a comparable plan) from the chosen lender. This option is there up until the commencement of your new mortgage deal, which means you can lock-in a deal early, and then benefit should rates improve.

Conversely, with some rates rising, you may want to lock-in early, should deals increase in the next few months.

The ongoing monitoring of deal rates is one of the services that we provide.

Identify the deal that meets your needs.

To achieve this, we would look at the wider marketplace. For existing borrowers, the lender that offered them the most suitable deal, 2, 3, 5 years back, may not be the one to turn to this time round.

Also, the fact that we undertake the legwork to look elsewhere, may simply deliver the reassurance that you should remain with your existing lender.

First-Time Buyers

We’re also mindful that many of those who are renting (who may want to get onto the property-owning ladder) are unlikely to escape rising costs, as landlords may pass on their extra cost of borrowing. If this prompts someone to consider purchasing their first home, then we can deliver the advice they need.

We’d liaise with others on your behalf

This covers, for example, the lender, solicitors, estate agents, and surveyors.

Whatever your situation, we’d fully assess the suitability of the options on offer. And you can take comfort from the fact that we operate in this sector day-in day-out, plus have the qualifications and expertise to deliver advice that meets your needs.

You may have to pay an early repayment charge to your existing lender if you remortgage.

Your home may be repossessed if you do not keep up repayments on your mortgage.

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