Don’t take no for an answer when it comes to getting a mortgage
There are still many ways to become a property owner.
So are you ready to buy your first home or move up the ladder? If you’re reading the headlines, you may be hesitant but at The Mortgage Brain we’re not from the “computer says no” school of thinking. For starters, we have a great calculator on our website to give you a good ballpark idea of how much you may be able to borrow by simply tapping in your income. We’ll then give you a selection of the latest mortgage deals so you can get a good idea of interest rates. But that’s just the start of your search. Book in for a 30-minute chat with one of our team to find out how we can get really get you moving forward with your mortgage application.
Smaller homes stretch affordability
We can’t get away from the fact that higher interest rates are affecting affordability and research by Hamptons says that this has strengthened demand for smaller homes. It’s not a bad shout but competition from downsizers looking for similar properties will also keep prices firm in this sector if demand is strong. Some sellers will be open to offers so if you see a property on the cusp of what we’ve suggested you can afford, there is no harm in making a cheeky offer. Having a mortgage in principle tucked under your belt will also show you are serious and can prove your affordability. That could just swing the deal.
Be in it for the longer term
Increasingly lenders are offering longer term mortgages of between 35-40 years. This can seem a lifetime and it is, but don’t be put off. In the short term it will make repayments more affordable, and the mortgage term can be reduced later when you have built up equity in the property or your salary has increased. We always remind our customers when their current rate is coming to an end at least six months before so we can look again at your finances, try to make savings and find a better deal. We can also then reserve this rate so should interest rates rise your deal is protected and if they go down you are not tied in and can look at an alternative mortgage. Only a broker can do this for you.
Enticing incentives are back
Buyers of a brand-new home are increasingly finding developers are offering incentives to help the purchase. We work with many house builders to secure good mortgage deals for their buyers so we can factor in these offers. And it’s worth remembering that if you’re referred directly to our team from a UK house builder you won’t pay any arrangement fees. The bank of mum and dad is still featuring highly when it comes to putting down a bigger deposit but there are many other ways that lenders are accepting their help from interest earning deposits to income boosters and borrowing against their own home to help. So let’s have chat to discuss your options and you could find yourself a proud homeowner sooner than you think.
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