Deciding on purchasing a home or remortgaging is both an exhilarating and stress – inducing task. To relieve some of the stress and focus more on the exhilaration, a mortgage broker is instrumental. A competent mortgage broker can save you both time and money, especially in today’s situation, where both are of an essence.
With the prevailing pandemic situation, people are uncertain whether it’s the best time to mortgage or consider investing in buying a property or not, and how can a mortgage broker help them. We’ll highlight some pointers to help you make an informed decision.
UK mortgage rates have dropped to their lowest levels with the Bank of England cutting base rate to 0.1% on 19 March – the lowest it has been in the Bank’s 325-year history. But even with the rates being incredibly low, with the average five-year fixed rate said to now stand at 2.48%, down from 2.73% according to a research at MoneyFacts, the issue that is arising is the LTV (Loan to Value) rates are erratic. A good rule of thumb considered for LTV is ‘the lower the better’. If your deposit is bigger in relation to your property value, chances are your repayments will be lower and you’ll pay less money overall. Conversely, buying with a smaller deposit (higher LTV), can have its advantages as well, such as saving on rent, buying the house sooner, or taking benefit of any increase in house value.
The above are all, constantly changing variables, and if you are not much of a technical person, it can be hard to understand and follow by yourself. The best thing about having a mortgage broker is that they do the research for you, and help you get the best rates from the lenders, which meet your demand and needs, consequently saving you thousands of pounds.
Mortgage brokers have personal connections as it is their job with lenders, which makes them privy to negotiating better deals and navigating the scenario, which you as an individual most likely would not be able to do, in these hectic times, a mortgage broker can be your ticket to securing a loan.
Of course – as long as the numbers still work.
A number of lenders are willing to do valuation of property for you remotely, which means you can re-mortgage by staying with your current lender or switch to a new lender to either get a lower interest rate deal, a flexible mortgage deal, or looking to release some equity for yourself.
Remortgaging at present saves you plenty a month in interest payments. By the time your current rate expires, you could lock in a better rate today and avoid any increases, plus it will be hassle free. Your mortgage broker can bring you up to speed with what’s on offer from your current lender if you would like to stay with them and do a rate-switch and/or compare other deals by lenders in the market that best serves your requirement.
A mortgage broker will also know which lenders are offering automated valuations and how long the remortgage process is likely to take.
Housing/Property situation in COVID-19
Overall transactional activity has slowed, but it is not so due to low demand. The obstacles posed by the pandemic situation has forced the prospective buyers and sellers to reconsider their position. Your property at the current moment, cannot be visited for valuation, survey or to just get the feel of the purchase/property, hence, the reservations. But if past teaches us anything about property forecasts is that, once certainty returns, confidence returns, as normality returns, and a post lock down recession expected, make sure you get in touch with a great mortgage broker and pre- book the two-year or five-year fixed rate today.
We work with one of the best google rated brokers in London, their service is second to none and they will work with you to achieve your goal and make that dream into a reality!
For more information contact us or get in touch with Bennison Brown directly on 0207 427 6067
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