Comparing mortgage lenders
Mortgage lenders charge an array of fees, and a few are far better and speedier at turning around offers – crucial if you would like to maneuver fast to secure the property. While others are a far better option if you’re self-employed or your employment isn’t straightforward. You’re on a fixed-term contract, or your work is seasonal.
That’s where a mortgage broker is often worth their weight in gold. You’ll see one face-to-face, over the phone, or use a digital broker. Whatever you select, confirm you recognise precisely what you’ll be paying for his or her advice. And check what people say about them on review websites like Trust-pilot and Feefo.
What effect is Brexit having on mortgage rates?
Brexit may have created the political show of the last decade, but understanding its effects on mortgage rates is tough to unpick, consistent with Peter Getting of mortgage brokers London and Country. ‘I’m no economist, and it’s hard to ascertain an immediate impact on mortgage rates which will be attributed to Brexit.’ What Brexit has resulted in is fewer buyers, and that, in turn, has meant that some mortgage lenders have reduced their interest rates to draw in customers.
Peter says this is often particularly noticeable on high loan-to-value mortgages, like 95 percent. ‘Today you’ll get a 95 percent five-year fixed rate as low as 2.99 percent. Six months ago, you’d have done well to seek out an identical product at 3.5 percent.’
Will mortgage rates go up or down?
It’s always hard to predict whether mortgage rates will rise or fall. And with the present political situation, it’s even harder. But Jane King, a mortgage adviser with Ash-Ridge Private Finance thinks rates are unlikely to fall. The consensus is that fixed rates cannot go much lower as lenders would be unable to form a reasonable margin of profit. Tracker rates are forced to follow Bank of England base rates. And again, there’s little room for these to scale back much further.’
What is a reasonable rate of interest for a mortgage?
Two percent is that the benchmark you ought to be aiming for, consistent with Peter Gettins of London and Country mortgage brokers. He says that lenders are offering this rate on a variety of products, from five-year fixed rates (if you would like to borrow up to 75 percent of the property’s value) to fee-free two-year fixes on 90 percent loan-to-value. You’ll even get a seven-year fixed-rate at slightly below two percent.
Can you negotiate a far better rate for a mortgage?
You can’t haggle the speed down, such as you can with home insurance. But if you haven’t reviewed your mortgage deal during a while. And particularly if you’re on the quality variable rate there’s a perfect chance you’ll get something better, says London and Country’s Peter Gettins. ‘Lenders are increasingly pretty good at taking care of their existing customers,’ he says, ‘Frequently offering them equivalent rates as new customers – sometimes even better.’
What’s the most uncomplicated period for a fixed-rate mortgage?
How long your fixed-rate mortgage lasts for depends entirely on your circumstances and budget. ‘A family with young children in a neighborhood with good schools who haven’t any plans to maneuver could search for a five or maybe ten-year fixed-rate,’ says Jane King of Ash-Ridge Private Finance. ‘A young, single one that wants to maneuver for his or her career might want the pliability of a way shorter fixed rate.’
If you compare a two-year fixed rate and a five-year one, with equivalent fees, the fees on the two-year mortgage will compute costlier on a ‘per year’ basis. It’s easy to specialize in the headline rate of interest, which can be lower on a two-year fixed-rate deal.
While there are many two and five-year fixed-rate mortgages, there aren’t numerous mortgage lenders offering them for ten years or more.
Check the first repayment charge, especially if you’re choosing an extended fixed rate. It’s typically a percentage that reduces over time. And it varies widely between lenders – and glued rate mortgage deals.