Quite simply, right now, there may never be a better time to buy a property. With Stamp Duty Land Tax now restructured, saving home buyers thousands, coupled with the extremely low rates of interest and the fierce competition between mortgage lenders… it really is a buyers dream come true.
Whatever your situation there’s likely to be a good deal
The beauty of the mortgage market right now is that whatever your current situation there seems to be a deal, of some kind, available.
First time buyer?
First time buyers are typically happy enough just to be getting a look in again after a 7 year drought of options to get onto the property ladder. However, 5% and 10% deposit mortgages are now available again, thanks, in part, to the governments Help to Buy Scheme.
The mortgage rates are so low right now that monthly mortgage payments are affordable for first time buyers, even if they are not able to obtain the super cheap rates that are on offer to more established borrowers with some credit history.
Remortgaging?
Many borrowers are looking now to remortgage and take advantage of the low Bank of England base rate.
This goes for those home owners that have been just buying some time on the Standard Variable Rate and are now looking at what Fixed Rate deal they can find. It also applies to those who’s Fixed Rate is coming to end soon and they are now in the position to arrange a better deal under new T&C’s.
Stuck on a Fixed Rate?
Even those borrowers who are already in a Fixed Rate arrangement can save money by switching.
Typically, it is rare to benefit coming out of a Fixed Rate early due to heavy redemption penalties, on average 3% of the loan balance, but with current circumstances in the mortgage market it means home owners can sometimes still be up to £1,000 better off over the next two years by breaking their existing contract, including paying the fine!
Many home owners took out 5 year Fixed Rate mortgage in 2012 when there was uncertainty about the Base Rate increasing. On average a five-year-fix deal in 2012 was 5% whereas now the same deal can be found for 2.19%, or, a two year-fix as low as 1.19%.
Saving money on monthly payments over the course of the loan is the key objective.
It won’t work for everyone and it largely depends on the deposit, the loan value and the redemption terms.
However, if you are stuck in a Fixed Rate arrangement, at least suss out your options so you won’t have to sit back and suffer whilst others are making hay whilst sun shines!
Fancy a Buy-to-let?
The buy-to-let mortgage market is steadily growing too with a 25% increase from 2013 to 2014. It is still only around 50% of the level it was pre 2007 but it is stabilising and when there is demand, supply follows. This boost in interest in investment properties is encouraging and lenders are offering competitive products to support this growth.
Don’t delay – ensure your mortgage is at the best rate
Whatever your situation, Dental & Medical Financial Services can give advice on your options to ensure you have the best mortgage rate possible for your situation. Contact Chris for a free, no obligation appraisal.
Tel: 01403 780 770