Rates for mortgages have decreased for the first time in two months as a result of better-than-anticipated inflation data. ***As investors become more optimistic that the Bank of England won't hike interest rates as much as initially anticipated, rates on both two and five-year fixed loans have decreased.
Do you want to move and take advantage of the huge choice of inspiring homes available? Here are a few options you might like to consider and discuss with your mortgage broker:
The Mortgage Guarantee Scheme
Extended until the end of December 2023, this government-backed scheme has helped over 24,000 households get on the property ladder.** Its aim is to help people with a 5% deposit, and it was launched in April 2021. Aimed at first-time buyers, it’s similar to the government’s Help to Buy scheme, which ended earlier this year.
35-year mortgage deals
Increasing the term of your mortgage could bring down the cost of your monthly mortgage payments. You may pay more interest because you are taking longer to pay for the home you want, but a property that may have been out of reach may suddenly be a possibility.
100% mortgages
Saving your deposit is often the biggest challenge to getting your first footing on the property ladder. With the return of 100% mortgages, you may no longer have this hurdle and it could potentially save you a lot of time paying rent when you could be paying a mortgage.
Interest only mortgages
Another option to consider is an interest-only mortgage, which could lead to much lower payments. If you have a lot of equity in your home, this could stand you in good stead when it comes to buying the home you want now.
Green mortgages
Some mortgage lenders now offer more competitive mortgage interest rates for greener, more energy-efficient homes. This, combined with lower energy bills, means that you could save significantly on your monthly outgoings.
Consider porting your mortgage.
Porting allows you to move home with your existing mortgage. So, if you are happy with the terms of your current deal and it’s not about to end any time soon, then this could be a cost-saving solution. You may be able to borrow more, as many high-street lenders offer top-up mortgages. Speaking with your broker is important, as some lenders’ rules may differ.
There tends to always be a way
Remember mortgage brokers are the experts, with knowledge of lenders' rules and rates so it's important to seek personalised financial advice where they can consider your exact circumstances. Speak to one of our agents if you’d like to be put in touch with our recommended brokers for an initial chat.
If you’re ready to get moving why not get started with a valuation from Durden & Hunt?
Bank of England*
GOV.UK**
The Times***
