We just commented on the sharp rise in mortgage arrangement fees, but what about those mortgage rates? Rates have been at the top of everyone homebuyer’s mind as they try to break into the property ladder. Does that mean that your dream of owning your own home just isn’t going to happen? That’s not the case at all. The truth is that you’re going to be able to get the home that you’ve always wanted, but it might take a bit more planning than what you expected to have.
There is a new Bank of England survey out that displays the strong chance that mortgage rates will drop significantly over the next three months. The truth is that this is supposed to stimulate the economy at a time where we could use all of the stimulation that we can get. There’s no need to worry about being locked completely out of the market. Even with the rise of more fees, there’s always a chance to shop around.
And it’s shopping around that will allow UK homebuyers to have the most leverage. Don’t just go with the advertisement that seems to leap out at you the most. Go with the one that really lets you expand your horizons in terms of what will actually be done. You can’t go wrong if you look at things from that point of view.
Why are deals getting so cheap? The Government launched the Funding for Lending scheme in August of last year, which means that bank funding costs are much lower. The Chancellor has also jumped in to handle things by using the Budget, channeling these efforts under the Help to Buy campaign.
Loans are much more available, with good mortgages that have over 75% loan to value ratio.
Keep in mind that lenders will still be hunting for the best borrowers in terms of credit scoring, so you will definitely want to make sure that you’re keeping your finances in check.
Confidence in the marketplace is still pretty thin, but many authorities hope that this will be different as time passes.
Are you going to buy your first home this year? This might be the time to finally do it. Weigh your options and make sure that you use a mortgage calculator to project your costs. Don’t forget to add in maintenance and taxes — you’ll need to keep up with both in order to truly enjoy your home to the fullest.
