Cheap mortgages and flat property growth

Monday, 27th January, 2020
cheap mortgages

You’ll be pleased to know that despite the ominous title, this article is not a dreary take on the UK’s bleak property outlook. In fact, it’s quite the opposite.

According to Nationwide, weak property price growth in 2019 coupled with rising wages and employment played a driving factor in helping first time buyers get a mortgage. In fact, in the 12 months to October 2019, 354,400 got a foot on the property ladder – more than double the lows of 2009.

As a Guildford mortgage broker, the team at Complete Mortgages believes that there is also a third factor at play: the ability to get a cheap mortgage.

We covered this in a recent article about remortgaging, which touched on the number of great mortgage deals currently on the market. However, we didn’t examine cheap mortgage deals against the backdrop of flat property prices, so let’s do that now.

1. Now is the time to apply for a cheap mortgage

Huge competition amongst mortgage lenders is driving down mortgage rates. But just remember: nothing lasts forever. Maybe you’re a first time buyer searching for a first time buyer mortgage. Or maybe you’re simply ready to upsize. Either way, mortgages don’t come much cheaper than what they are right now, so if you’re ready to arrange a mortgage, then now is the time to do it.

2. Cheap mortgages + flat property price growth = a good deal

Take point one and add the fact that property prices are not currently skyrocketing, and you might find that you have more purchasing power than you thought (or certainly more than you did a couple of years ago). However, the ‘nothing lasts forever’ point stands here, too, as the same Nationwide survey stated how prices moved up 0.1% in December. Now, if they continue to move up then this is, effectively, eroding the value of your mortgage deposit.

3. Don’t hang around

We’ve covered how now’s the time to take advantage of the best mortgage deals. We’ve also looked at this in tandem with flat lining property prices, which may not be flat lining for long. And let’s not forget that the ambiguity around Brexit, which has been instrumental in the stalling of property price growth, seems to be over. Finally then, with employment and wage growth, you might want to ask yourself whether or not interest rate rises will follow. In which case, the three things currently working in your favour may switch to become the three things that ultimately work against you.

We can’t predict what is going to happen with property prices, employment growth and interest rates – and this article certainly doesn’t represent any advice on our part – however, they are certainly three points to consider if you’re contemplating getting a mortgage in 2020.

Ready to apply for a mortgage and in need of good mortgage advice? Look no further as our team of Guildford mortgage advisers will be able to help guide you through the process and make getting a mortgage as seamless as possible. Call us on 01483 238280 or email info@complete-mortgages.co.uk.


Time to remortgage?

Friday, 27th May, 2016
apply for a mortgage

When is a deal not a deal? In mortgage terms it’s when you’re paying more for a home loan than you need to be – and there are quite a number of people who are guilty of it.

Not because they’re thoughtless or have money to burn, but because life is busy and all too often, accepting the shift onto a standard variable rate is sometimes easier than rolling up your shirtsleeves, getting into the ‘nitty-gritty’ of your agreement and getting the wheels in motion to change your mortgage (which, for many homeowners, is perceived as a mammoth job in itself).

Here’s the thing: you could me missing out on a cheaper mortgage deal. Many of you will be reading this and thinking, ‘that’s nonsense, my standard variable rate is 2.50% – could it even get any cheaper?’ If you are that person, then the answer is, ‘yes, it can’.

Not that long ago, it seemed as though interest rates were set to rise at the end of 2015. And then they didn’t. Now, there are predictions of an interest rate rise up to 1% at the end of 2017, rising to 2% at the end of 2018. The result of which is that there is now an abundance of ‘cheap mortgages’ available, some of which include five year fixed rate mortgages that cost less than what many people are currently paying for their standard variable rate mortgage.

As a Guildford mortgage broker with a reputation for providing good service, we let our existing customers know when they’re about to default to their pre-agreed standard variable rate. They then have the option of applying for a mortgage that’s cheaper and saves the money that they would have otherwise unknowingly spent without seeing any real gain.

Of course, those people who don’t have any safeguard or ‘alert system’ in place, either because they don’t have a broker or because their broker isn’t doing what it should, will never know what they are missing.

Which, of course, is why I’m writing this piece. As we enter that time of the year whereby mortgages typically ‘reset’, it’s important that homeowners are made aware of their options.

Similar to changing utility provider, changing mortgage is often much less work than you think – particularly if you have a reputable mortgage broker doing the work for you.

Regardless of whether you decide to use Complete Mortgages for your mortgage application or not, then just be aware that the market is currently very competitive. And, as is the case with everything, nothing lasts forever. So, if you’re aware that you’re about to enter the world of SVR mortgages – or even if you weren’t aware until reading this piece – then I would urge you to a) find out what your rate is and b) shop around and see what is currently out there.

Alternatively, contact the Complete Mortgages team to find out if we can save you money.

From remortgaging and first time buyer mortgages to commercial mortgages and bridging loans, we can help. Contact 01483 238280 or email info@complete-mortgages.co.uk.

By Mark Finnegan, Director at Guildford mortgage brokerage, Complete Mortgages