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.


Putting the ‘ease’ in Equity Release mortgages

Thursday, 31st October, 2019

There are numerous reasons why aging homeowners would want to release property wealth.

Whether it’s to boost the pension pot, help your children (or grandchildren) afford their first home or simply free up some money to buy that dream car you’ve always wanted, equity release mortgages have come to represent a viable route in which homeowners can convert bricks and mortar into ready cash.

Furthermore, thanks to the proliferation of equity release mortgage deals over the last few years, it’s also an easy and cost efficient route, too.

According to the Equity Release Council – a trade body that represents the equity release mortgage sector and promotes high standards of conduct and practice in the provision of and advice on equity release – a staggering £1.85billion in housing wealth was released in the first half of 2019.

And this growing popularity is also helping to drive down equity release mortgage rates, too, with some lifetime mortgage rates coming in at under 3 per cent. In summary, going down the equity release route is now a very easy process to carry out.

If you’re about to apply for an equity release mortgage and would like to know more about how they work, then read our guide to equity release mortgages. Similarly, read the top tips on equity release mortgages to get Complete Mortgages’ take on what you should be considering before you start the process.

However, as easy as it is to get an equity release mortgage, there are a few things to consider:

1. Borrow in stages

Regardless of the amount you agree to free up via equity release, don’t take it all in one go (if you can help it). After all, as soon as you borrow, interest – and the effects of compound interest – quickly begins to have an effect. If you think £20,000 can cover you for 10 years, just take that and wait before taking the next sum. There’s little point paying interest on money you don’t need.

2. Quality counts

As mentioned previously, the Equity Release Council exists to promote high standards and uphold quality. So, make sure that when it comes to applying for equity release, you use a company that is a member of the Equity Release Council.

3.  For your benefit…

Check your benefits status. If you’re entitled to – or currently receiving – benefits, a significant injection of cash (which is treated very differently to equity locked in a property) may change your benefits status. In fact, it could result in the reduction, or even the complete stoppage, of your benefits.

4Get good mortgage advice

A good mortgage broker in Guildford, such as Complete Mortgages, will be able to help you make the right choice when it comes to equity release. There is a lot to consider when it comes to this type of mortgage, so speaking with an expert is an absolute essential from our perspective.

As an equity release mortgage specialist, let Complete Mortgages help you decide if equity release is the best way forward for you. Contact the team on 01483 238280 or email info@complete-motgages.co.uk.