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It's been a year of turmoil in the mortgage market with ever-increasing rates and changes. Even since June, the rate offered on an average five-year mortgage has risen by about 0.7% to 4.01%. Furthermore, the FT reported that 40% of fixed rate deals would end this year, exposing borrowers to high costs and Moneyfacts data revealed the price of a new two-year fixed mortgage is now rising faster than base interest rates.
With more rate rises expected for the rest of the year, now is an excellent time to find a new deal for existing homeowners and new buyers to get an agreement locked down at a decent rate. A mortgage broker can secure a pre-approval for you, allowing you to know the maximum mortgage you can qualify for. An added benefit also means sellers will be confident that you can afford the house.
"If you're planning to buy a property, it's vital to know how much you'll be able to borrow, which will inform what type of properties you can afford, and in this current market, that is essential. Most lenders typically lend around three to five times your annual salary, but they also consider affordability and look at your credit score, income and outcomings. Therefore, we recommend that our clients speak to us in the first instance, as we always perform a thorough affordability assessment before recommending the most appropriate mortgage for their circumstances," said Donna Murray, Founder and Mortgage Broker at Greenshoots Financial.
Furthermore, Greenshoots Financial also keep in contact with their clients throughout the life of their mortgage to ensure they are always on the best possible product for them. Sadly we are now reading too often in the media of customers who hadn't realised their fixed rate mortgage loan term had ended, and they ended up paying through the nose on the standard rate. By using a broker, you not only have access to the whole market and receive informed and regulated advice, but regular contact ensures customers are protected from unexpected changes.
Finding the right mortgage to meet your needs and circumstances can seem overwhelming, particularly during this time. However, mortgage rates change regularly, and new product launches are still being brought to market, including some exclusive broker offers. The good news is Greenshoots Financial are on hand to help you, explaining what's on offer, what the key features are, and what type of mortgage is most suitable for your circumstances. With average standard variable rates above 4%, it's essential to remortgage to another deal before the end of your fixed term.
As independent brokers, Greenshoots Financial guide you through the various options to arrive at an affordable solution that is right for you. Get in touch to discuss how Greenshoots Financial can help you.