How is Coronavirus affecting mortgages?

Friday, 13th March, 2020

There’s nothing like an interest rate cut to get people to sit up and take notice (not that people aren’t already on high alert following the daily stream of news surrounding Coronavirus).

However, an interest rate cut does generally signify some kind of issue. Or, at the very least, provides a signal that something isn’t as it should be.

It’s also quite polarising. On the one hand, you have savers – possibly even those who’ve paid their mortgage off – who will have rolled their eyes at the fact that their savings are no longer earning as much money as they were only a few days ago. 

This also applies to those who’ve recently entered fixed rate mortgage deals, who are likely to experience a period whereby they’re potentially paying more than they would have on non-fixed mortgage deals.

On the other hand, there are those on tracker mortgages who will no doubt welcome a period of cheaper monthly mortgage payments.

Either way, the link between Coronavirus and mortgages is certainly being felt – and not just by homeowners, either. As a team of Guildford mortgage brokers, we are adjusting and adapting our approach to mortgage applications on a daily basis, too.

Negative points aside, and without trying to sound too opportunistic, Coronavirus does present an opportunity for those applying for a mortgage or who are thinking about remortgaging.

As the Bank of England’s interest rate has been cut from 0.75% to 0.25%, lenders are now likely to reduce their mortgage rates, too. Complete Mortgages predicts that any reduction by lenders isn’t going to reflect the entire 0.50% base rate cut, but probably somewhere in the region of 0.10% instead. Of course, rates may not drop at all and this, in part, depends on how long the Coronavirus lasts and how widely felt its impact is.

However, just as those keeping a keen eye on the stock market are waiting to buy back in at the right time, our advice would be to keep in touch with your Guildford mortgage adviser (and by that we mean us) to find out just how low fixed rate mortgages go before committing to a 2, 5 or even 10 year fixed rate mortgage.

For the latest mortgage advice and Coronavirus mortgage updates contact the team on 01483 238280 or email info@complete-mortgages.co.uk.

Note: those currently in the mortgage application process with Complete Mortgages should not be concerned about disruption of service. All of the team are ready and fully equipped to work from home should that become necessary.


How will Brexit affect my mortgage?

Monday, 28th January, 2019

Ah, Brexit. If there’s one word that people – regardless of their position – are tired of hearing, it’s probably that one. However, it’s a reality and one that is affecting all markets – including the mortgage market.

Regular readers will know that the team at Complete Mortgages isn’t one to shy away from topical debate, so as the official date approaches (or moves further away?), we thought we’d address Brexit and mortgages head-on.

Is it a bad time to get a mortgage?

There is general uncertainty around Brexit – and understandably so.

However, you may be surprised to learn that despite all the talk of doom and gloom, housing transactions, post-EU referendum, have remained relatively stable.

Figures from HMRC UK Property Transaction Statistics suggest that the biggest spike was pre-referendum in April 2016, when there was a big push for mortgages and house purchases prior to the introduction of the 3 per cent stamp duty surcharge. Since then, there haven’t been any dramatic reductions or increases in the number of houses being sold.

Shall I make the jump to a fixed mortgage?

There is still a long way to go – maybe even longer than we thought – before we officially leave the EU. As a result, our advice to those who are about to apply for a mortgage is don’t put your life on hold.

Mortgage rates are still very low so there are still some fantastic deals on the market. Equally, given the turbulence around Brexit, it has become a buyers’ market. On that basis, buying now could result in the savvy property hunter bagging a bargain.

Yes, there are some incredibly competitive fixed rate mortgages on the market right now, however any decision to switch to a fixed rate mortgage, in our view at least, should be made with more than just Brexit in mind.

Taking a long-term view

Often, when you’re in the eye of the storm, it’s difficult see beyond the immediate issues and consider the long-term picture.

Whilst very different to Brexit, the financial crash of 2007/8 caused much panic and saw house prices slump significantly. However, much less than a decade later, house prices bounced back and the impact of the crash drifted from the minds of UK homeowners. 

Whilst Complete Mortgages cannot predict the future, buying a house is a long-term investment, so making decisions using a short-term view could be, well, shortsighted.

Brexit is unknown territory, yet regardless of the direction that it takes us in – for good or for bad – the world will still continue to spin and people will always need mortgages to buy property.

As a Guildford mortgage broker, we have access to hundreds of fixed rate mortgage deals available NOW that will provide certainty of payments in these uncertain times for homeowners – existing and prospective – in Guildford and the surrounding areas. If you’re sitting on the Brexit fence and need some mortgage advice from a Guildford mortgage adviser, why not contact the team on 01483 238280 or email info@complete-mortgages.co.uk.