Category: Mortgages

Why interest rates could start to rise in 2022 and what it means for your mortgage

Low interest rates have made borrowing money cheaper than ever, but interest rates could start to rise in the next 12 months. If you’re paying off a mortgage, it could affect your outgoings and the full cost of borrowing. We’ve experienced over a decade of very low interest rates. That’s been good news if you’re borrowing but has negatively affected savers. However, this could change as the economy begins to recover from the effects of the...
read more

10 steps that can help you secure a mortgage for your dream home

If you’re unhappy with your current home, you’re not alone. Millions of homeowners say their property isn’t right for them and money is holding some back when it comes to finding their dream home. According to a Zoopla survey, half of Brits say they are currently stuck in a home that isn’t suitable for their needs. Needing more space was the most popular reason for wanting to buy a new property, with 40% saying this. A quarter also said...
read more

Rent is now “cheaper” than a mortgage but there are still reasons to get on the property ladder

House prices have soared over the last year and it means that renting a property is now “cheaper” than making mortgage repayments. Yet, while monthly costs could be higher for aspiring homeowners, there are still reasons to get on the property ladder now. For the last six years, it’s been cheaper to pay a mortgage each month than it has to pay rent. According to the BBC, before the pandemic, people buying a house with a 10% deposit were...
read more

4 things parents can do to help children secure a mortgage and financial security

The route to homeownership is filled with challenges and securing a mortgage is becoming increasingly difficult for aspiring first-time buyers. As a parent, you may want to provide support and there are several different options to consider. House prices have been growing at a pace that outstrips wage growth. According to the Halifax House Price Index, in April 2021, the average house price was £258,204. This followed an 8.2% increase in just a...
read more

7 things to consider when choosing your mortgage

Whether you’re a first-time buyer or already a homeowner, choosing the right mortgage product for you is important. It could save you money as well as ensuring your mortgage fits your life plans. However, with hundreds of mortgage products to choose from and an array of lenders, how do you know which is right for you? These seven questions can help narrow down your search. 1. Do you want a repayment or interest-only mortgage? The first...
read more

6 reasons to use a mortgage broker

When you’re moving home, it comes with a lot of expenses and you may be looking for ways to reduce costs. However, paying a mortgage broker to work on your behalf can add value and mean you save money over the term of your mortgage. The mortgage market can seem complex at any time, but given the current situation, a mortgage broker is more important than ever. Following Covid-19 restrictions, UK mortgage applications reached a 12-year high and...
read more

How the surge in house prices could affect securing a mortgage

House prices have reached a record high following the introduction of the Stamp Duty holiday and viewings now being allowed after a temporary ban due to Covid-19. The Halifax House Price Index reports house prices have increased by 5.2% year-on-year; the strongest growth since 2016. Despite current economic uncertainties, the average house price is now more than £245,000. This is the highest ever average recorded by Halifax. This rapid...
read more

Older borrowers facing challenges securing mortgages

If you’re in retirement and have mortgage debt, research indicates it can be far more challenging to secure a mortgage. You may be forced to pay higher interest rates without a new deal, placing further pressure on your finances. It’s not uncommon to still be paying off a mortgage after retirement. And as the average age of first-time buyers is gradually rising, it’s a trend that’s expected to continue. In fact, in 2018, around a fifth of...
read more

Rise in flexible working could affect the housing market

The Covid-19 pandemic is expected to be the catalyst for significant workplace changes, including more flexible working options. It’s a trend that could affect the housing market as aspiring buyers shift their priorities. When searching for a home, ease of getting to work has long been a priority for buyers. Sellers with properties that have benefitted from excellent transport options or are located in commuter towns have benefitted from rising...
read more

5 things to consider before taking on a second mortgage

Are you thinking about taking on a second mortgage? Perhaps you want to purchase a holiday home for your family to enjoy, or maybe you want to invest in the Buy to Let market to provide an income in retirement. There are plenty of reasons why you may want a second mortgage, but it’s a big commitment that needs to be carefully assessed too. It’s easy to see why a second property can be attractive. Property prices have soared in recent decades...
read more