Update on the current mortgage market - David Baker

We all see the constant news stories about the mortgage market, and most rates, even at the best loan-to-value bracket, typically 60% and below, start with a high 5% or 6%. This means that if you are looking at remortgaging, you will pay a few hundred pounds a month more than you previously paid.?

Inflation and market feeling are key factors for this year; these have not been positive for the last few months. But the inflation data released on 19th July made for good reading, and the market has reacted well already. We are seeing the cost of lenders borrowing start to fall. We now need lenders to pass those drops on to clients.?

The general feeling from lenders is once inflation falls, rates may come down, but it's such a hard market to predict and feeling regularly changes.?

With rates as they are, is now a good time to buy?

If you looked solely at rates, the answer could be no, as rates are as high as they have been in recent years. On the flip side, rates don't last forever, but a discount on a property does, and clients that are buying now are mainly getting a decent-sized discount from the asking price, so I would say now is a reasonable time if you are confident you can afford the payments.?

What are the pros and cons of a property purchase?

The pros:?The ability to negotiate, stability of homeownership, the potential for the market to rise in future, and it is better than renting where all money is lost.?

The cons:?We don't know if the market will fall further. Rates are higher than we are used to in living memory.?

Will we see a market crash?

I don't think a crash. I think prices will fall a bit, but with a lack of supply and a ready supply of demand, I don't see a serious property crash, more a correction of a previously inflated market.?

How can our team help?

Arranging a mortgage isn't just about ticking boxes. Many clients we help have second homes, buy-to-let properties, above-average loan values and bonus income, making an application more complex.?

We deal with situations like these daily, so we can find and arrange a deal that suits you. We help you through the process from pre-application to having the keys in your hand. We are the whole of the market with access to many lenders.?Get in touch?today so our team can help you.