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The Ten Year Mortgage Battle

Mortgage Lenders Are In A Battle.

Mortgage lenders are taking the long view 10 years ahead to be exact, lenders have reduced their 10 year product rates. At the moment there are some great product rates out there in the mortgage market with rates starting from 2.20%. The lenders want your business so they are in a war with each other bringing the rates down for mortgage clients.

If a 10 year deal is too long for you, there are some excellent 5 year fixed rates, starting from 1.49% of course these rates will depend on the financial circumstances of the client so the mortgage rate may be different subject to circumstances and the mortgage lenders appetite for risk. Why are clients approaching our mortgage brokerage and making enquiries about longer term fixes, well I think it is a combination of the election and Brexit the general population at the moment want long term security and to be able to plan and budget ahead.

There are around 20 lenders offering 10 year fixed rate products, with around 160 product variations, this number will continue to grow. As we seem to be following the trend of the united states and other countries where mortgage clients tend to prefer longer term mortgage fixes. However at the moment 2 year fixes are still the most popular, you need to discuss with your mortgage broker the best option for your own personal circumstances.

If you would like a free chat about your circumstances and a professional recommendation on a mortgage or bridging product to suit your needs, call Paul on 01902 213201

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What is a re-mortgage?

A remortgage  is the process of paying off one mortgage your current mortgage with the proceeds from a new mortgage using the same property as security.

Common misconceptions with remortgages, which clients ask me about on a daily basis.

You only remortgage if you need to borrow extra money on top of your current mortgage balance.

Answer – no you can remortgage to a more competitive rate keeping the existing mortgage balance and save money each month, or shorten or extend the lending term.

You can only remortgage your property so many times.

Answer – There is no limit to the amount of remortgages as long as the financial numbers stack up with the property and the clients demands needs match the new mortgage product.

You can only remortgage when your current mortgage deal is coming to the end of its discounted or fixed period.

Answer – No you can remortgage at any point however there may be penalties for leaving the lender whilst you are tied in to the mortgage product.

“I will add that really clients need to speak to their mortgage broker months before their current product deal ends so the wheels can be set in motion.” “ So they can change the mortgage product as the old one comes to an end, to avoid paying the lenders standard variable rate, which could be hundreds of pounds more per month.”

If you would like a free chat about your circumstances and a professional recommendation on a remortgage to suit your needs, call

Paul on 01902 213201

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The Best Six Mortgage Lenders

The current top six lenders two of them being in joint 2nd place. These lenders are offering excellent mortgage deals and a quality customer service package.

 1 Nationwide  79%

2  Principality Building Society 76%

2  Coventry Building Society 76%

3 Skipton Building Society 74%

4 Metro Bank 73%

5 First Direct 72%

There are lenders that were rated as offering a less than perfect service or a mortgage rate that was higher than the market average. Kensington received the lowest rating of any lender for value for money, scoring just two stars. In September 2019 the average rate of a two-year fixed deal from Kensington was 3.74%, compared to the industry average of 2.77%.

The average rate of a two-year fixed mortgage from Aldermore was also relatively high, at 4.39%. Lets put this in context having dealt with both lenders from a mortgage broker perspective, you do spend longer engaging with them on the phone or via email etc.  This is because they are very busy, demand for these type of products is on the increase.

Clients have said to me their rates are higher my friend is paying 2% less on their mortgage interest rate. I have replied your friend has totally different financial circumstances and needs that’s why. If your income is unusual or you have a low credit score than you may need a bespoke mortgage product from a specialised lender. They will be comfortable taking the extra risk.

If you like a free chat about your circumstances and a professional recommendation on the best mortgage for you call

Paul on 01902 213201

 

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Mortgage Deals going Cheap Really?

Mortgage broker in wolverhampton contact Paul on 01902 213201

Are you considering changing your mortgage deal because now is a very good time to switch your mortgage product.

Why is now a great time? Well we have Brexit which is damping down the economic climate at the moment in Britain. However this is a positive and not a negative because most consumers are waiting and not making any financial decisions at the moment.

There is a certain level of uncertainty across the globe at the moment which is having a ripple effect across Britain. The ripple effect is that because long term internal bank to bank lending rates have dropped over the past three months, this decrease has now been passed on to the mortgage borrower. Mortgage lenders now have tranches of money which they have borrowed at a cheap rates. Therefore they are passing on this cheaper money to the consumer so rates are low for fixed rate products at the moment.

 

Apple finance mortgage broker covering Stafford

At the moment subject to personal circumstances there are plenty of mortgage products on a 2 year fixed deal below the 2% mark. If your current mortgage deal is coming to an end use a independent mortgage broker they will have access to mortgage products not available through the high street banks, plus information about what each lender is looking for in terms of client criteria that is not made available to the general public.

mortgage broker in Cannock

If you like a free consultation and a professional recommendation on the best mortgage for you call Paul on 01902 213201

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The Wolverhampton Property Market Is Still Strong

House prices have moved ahead in August according to the Halifax, the property market is still strong. Average prices rose by 0.3% month-on-month, taking the annual rate of house price inflation to 1.8%. There is still good demand for new homes despite the uncertainty in the political and economic environment because people still need to move home and buy and sell properties. Market data released from the Halifax states the average price for a new home in the UK has risen to £233,541, up by almost £4,000 since the same point last year. The Wolverhampton property market is supported by strong employment levels and the continued shortage of houses for sale.

One key factor for property buyers in Wolverhampton is the continued fall in mortgage interest rates. Falls in gilt yields, which have dropped to record lows this week  with interest rates dropping to just 0.4% are  being passed on providing lower fixed-rate mortgage deals. At the moment we have two-year fixes available at rates of around 1.20% depending on mortgage product and personal circumstances, while certain five-year deals have fallen to around 1.90%.

If you like a free consultation and a professional recommendation on the best mortgage for you call Paul on 01902 213201

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Is Wolverhampton Cheap For First Time Buyers

The house portal Zoopla has collected data and confirmed that from the area’s within the Black Country and Birmingham, Wolverhampton has one  district which has the cheapest property prices.

At the top is All Saints in Wolverhampton. With an average house price of £101,600, it’s the cheapest on the list according to the property portal Zoopla. The average annual income required to secure a property in this area is £22,000, with an average deposit of £16,000 required. This is of course a broad guide as to the costs and the amount of deposit required.

Most people seem to be concerned about the two B’s  Brexit and Boris, yes the property market in Wolverhampton and the midlands is experiencing uncertain times and yes this may last for a few months. Despite all this the residential market remains stable.

So when you see a property for sale at £101,000 remember that Whether it’s a no-deal or deal Brexit, houses will continue to be bought and sold. Regardless of what Boris Johnson or Brexit throw at the country on the 31st October prices will steady over time and then they will rise. 

If you like a free consultation and a professional recommendation on the best mortgage for you call Paul on 01902 213201

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I Want To Buy A House But I Am Self – Employed

This question has been put to me many times.

Clients Question.

Will I have to wait until I have three years business accounts, just over a year ago I became self – employed. However it now feels like the right time to buy my first home in Wolverhampton and I don’t want to wait. I don’t really want to go back to being an employee just to get a mortgage. My friends all have different opinions about whether I can obtain a mortgage or not.

Paul’s Answer.

Yes you can obtain a mortgage when you are self – employed by providing just one year’s proof of income. There are lenders out in the market place but of course only a small number. The rates will not be quite as competitive as a mainstream mortgage product because the lender is taking on more of a risk with the self – employed person.

If you have two years plus business accounts then you will have more choice and highly competitive mortgage products, subject to your credit profile and the nature of your self – employed status.

If you like a free consultation and a professional recommendation on the best mortgage for you call Paul on 01902 213201

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Homes in Wolverhampton increasing by £36 a day

House prices in the West Midlands are rising by more than £36 a day, according to latest research. The West Midlands is Britain’s top performing region, with the average value of homes increasing by £36.00 per day, or £6,695 in total, since the start of this year. Here are the top three performers.

1. West Midlands, £6,695, £36.00

2. South East England, £6,463, £35.00

3. North West England, £3,731, £20.00

The statistics have been gathered by Zoopla from current house price data. “Property is a phenomenal way to build long-term wealth but if you are looking at your first property then maybe think of it as your home a reasonable stable long – term investment. House prices can go down as well as up but if you play the long game and don’t panic if prices go down as well as up you should see stable growth over the long term”.

If you like a free consultation and a professional recommendation on the best mortgage for you call Paul on 01902 213201

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Wolverhampton A Buyers Market

Just this week, data has revealed that in London, prices are now falling at their fastest rate since the financial crisis of 2008. However in the North-West, growth is at 3.4 per cent. How can buyers and sellers in the Wolverhampton area make sense of what is happening.

But with political uncertainty around the country’s next Prime Minister, a potential General Election and concerns around how Brexit will play out, buyers are mostly waiting and sitting on their hands but they may be in for a shock. What do I mean well at a micro level where I am based in Wolverhampton the market is still doing well, after Brexit with all the pent up demand prices could move upwards pretty fast.

All eyes are on the North-West and the Midlands. By region, the North-West recorded the highest annual house price growth at 3.4 per cent in the year to May 2019. Close behind is the West Midlands, where prices increased by 2.7 per cent, according to (ONS) data. The Midlands’ economy has been boosted by big firms such as HSBC opening offices and various new businesses opening up larger sites in the region. HS2, the high-speed railway which, it is planned, will connect London to towns in the Midlands and the North, is also helping to boost prices.

If you’d like a free consultation with an expert and a professional recommendation on the best mortgage for you, call Paul on 01902 213201

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Wolverhampton A Black Country Property Hot Spot?

According to new analysis of the Land Registry data base there has been a property price rise of 35% in the value of Wolverhampton property in the WV14 area. This has occurred in one year from an average of £82,500 in 2017 to £111,250 in 2018. We don’t have a full break down of the data so it will include all the different property types of house’s and flats.

Whilst this is great news for the area in my opinion if you are looking to purchase your first home or to move up the property ladder asset growth should not really make any difference because you are looking for somewhere to live regardless. However the fact remains the longer you leave it to purchase your home in Wolverhampton the more you will pay for it.  Property investors and Buy To Let landlords will have a different perspective on the property market, but if they play the long game and keep their properties for a number of years they will have a secure asset.

If you’d like a free consultation with an local expert based in Wolverhampton and a professional recommendation on the best mortgage for you, call Paul on 01902 213201