As the saying goes, ‘when it rains it pours’ – and in the UK right now, as we settle into autumn and brace ourselves for winter, it’s certainly beginning to rain a lot more. And if it isn’t gloomy enough out there already, the Autumn Budget is just around the corner.
Admittedly, that does sound a little negative. But let’s be honest, the Chancellor rarely announces any big wins for us – it’s more about working out how bad the losses are.
However, as a Guildford mortgage broker that’s been in business since 2005, we’ve seen many budgets come and go. And whilst the format is generally the same, the context is always a little different.
So, here’s a Guildford mortgage adviser’s take on where the UK is at right now, what might happen on Budget Day (26th November) and what it all means for those thinking of applying for a mortgage.
Stability and calm
At the time of writing, the Bank of England has just held the base rate at 4.00%, which is good news (for those searching for the best UK mortgage rates, at least), as it means that borrowing costs – and therefore mortgage rates – are unlikely to increase in the near future.
This, combined with the fact that lenders remain competitive and are trying to outdo each other with respect to launching the best mortgage deals, means that the current window between now and Budget Day represents a period of calm.
Whether or not it’s the calm before the storm remains to be seen. However, as the Chancellor grapples to plug the finance gap, she has a number of levers to play with on Budget Day, which could, in theory, see fundamental changes to areas such as Stamp Duty, first-time buyer support, the way landlords are taxed and even capital gains.
A window of opportunity
Yes, we started the article a little pessimistic. And the reality is that the Chancellor could unveil a series of measures that benefit those needing to get a mortgage. Although, in our experience – and perhaps with the exception of first-time buyers – this is unlikely.
With that in mind, mortgage hunters might do well to take advantage of this period of calm and view it as a window of opportunity; one in which fixed rate mortgage deals can be locked in prior to any post-budget turbulence, which may very well take place.
If that appeals, then we suggest that you get the ball rolling before 26th November. First of all, check your mortgage end date. If it’s coming to an end, get in touch as we’ll be able to work towards securing you an offer at today’s rates just in case they go up after Budget Day.
Either way, and regardless if you’re a first-time buyer or an existing homeowner, it’s worth speaking with a mortgage broker. In doing so, you can lock in options so that if interest rates rise post-Budget, you’ll be able to fall back on the deals you managed to secure pre-Budget.
Thinking about applying for a mortgage before the Autumn Budget? Then act quickly. Contact our team of Surrey mortgage advisers on 01483 238280 or by e-mailing info@complete-mortgages.co.uk.
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