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 The Mortgage Brain says searching for a new mortgage well before your current deal ends is essential.

We’ve seen no let-up in mortgage applications from customers remortgaging and new purchases despite changing interest rates from lenders, often at short notice. We can’t stress enough the importance of searching for a new mortgage up to six months before your current deal ends. That way we can lock in the best rate now which has built-in flexibility, so if there is a lower rate available nearer the end of the mortgage you can switch to that. For first-time buyers we are still finding that getting a mortgage is cheaper than renting and once again, reserving deals and getting a copper-bottomed guarantee from a lender before you starting looking for a property will put you well ahead of the competition when it comes to making an offer on your first home. Being well informed from a broker like The Mortgage Brain means you can benefit from making a decision before the rates change.

Property Prices Dropping?

Are property prices dropping? This is always a double-edged sword. If you already own a property, you’ll want it to appreciate in value and see your equity grow. However, if you’ve been waiting to get on the ladder you will be keen to see prices drop which could mean putting down a smaller deposit or buying a more affordable property. Most indicators from lenders are that prices are not moving down significantly despite budgets being squeezed by the cost of living and higher mortgage rates. A report from Reallymoving says that it’s seen buyers and sellers continuing to agree deals at higher prices partly led by a rise in downsizer activity over the last three months, accounting for 29% of all moves, many of whom will be relatively insulated from higher borrowing costs. Cash buyers may also be prepared to pay more for a home they really want, thus keeping prices firm.

Asking Prices

There seems to be no panic from sellers many of whom are happy to stick out for the asking price and most sales fall through because the buyer can’t get the mortgage they thought they could get. So I return to my first point. If you speak to us at a very early stage, we can look at all your finances and let you know exactly what you can borrow and what your repayments will be. Then there will be no surprises later and no fall throughs because of your finances.

Must Have Information

Must haves for homebuyers More than half (52%) prospective homeowners say being within a 20-minute walk of public green space or park is a “must-have” when choosing a new area to move to according to research from estate agency Jackson-Stops. This was closely followed by good connections (48%) and a fast commute to work (48%). Energy efficient features are important for nearly one in three movers (30%), hoping to secure a future-proofed property, with the same number voting for a home office, downstairs toilet and large garden. While it’s always fun to see what we think is important when we buy a home, from our point of view, it’s making sure we get you the best mortgage deal whichever property you buy.

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