Should you get a mortgage? Can you get a mortgage? Are there any mortgages left?
So many questions. So many news updates. So much panic.
But the truth is, whilst the world is unsettled, and rates are fluctuating – it’s not all bad. There is hope (and help), there are options, business is booming, and you can still make the next (house) move that’s right for you.
But don’t just take our word for it. Here’s your questions answered by Mortgage Broker (and expert!), Steph Ralph from Open Door Mortgages:
- The news is scaring me, is it still possible to get a mortgage?
Yes! Mortgages are still really easy to get, there’s no shortage of lenders and they are happy to lend, it’s just going to cost a little more than it used to. But doesn’t everything at the moment!
- Why did so many lenders pull their products?
They had no choice. The mini budget sent the Switch rate through the stratosphere. People think it’s the Bank of England that controls the mortgage rates, but they are only one part. The banks had no choice other than pull the rates and put them back on at a higher level as the cost of buying money doubled overnight. If they hadn’t pulled the products, they would have lost billions. No one would expect anyone to sell something for less than they bought it, so they had to adjust the prices.
- Is now a bad time to get on the property ladder?
No, it’s always a good time. The market is the market, people say it’s a good market or a bad market, that’s not really true, it’s just the market. There’s no point saying “ohh we should have got on the market earlier” unless you have a time machine it’s a pointless statement. The amount of demand is still very high, and paying a mortgage is still cheaper than renting, so as a long-term investment in your family’s future it’s always a good thing.
- What’s your advice for first time buyers?
Save as much of a deposit as you can, the more you have the better the rate you will get. People think their rate is dictated by salary or a guarantor, but it really is down to your credit score and then the size of your deposit.
I appreciate it can be difficult to save a deposit especially if you’re renting, but mortgages are available from as little as a 5% deposit and in some cases – as long as you can afford it – all that can come from a bank loan! There’s plenty of options for first time buyers.
- Will my house lose its equity or is property still a good investment?
All markets rise and fall but over time a house will always grow in value. I remember back in 2009 there was no money, no mortgages – everyone said it was the end of the housing market, yet here we are in 2022 with houses worth more than they ever have been and more people than ever looking to buy. As with all investments if you take a long-term view and hold your nerve, property will always bounce back even if it stops growing for a little while.
- How can I get the most competitive interest rate?
Always speak to a broker, if you go to a bank they will only ever tell you about their products, and in many cases they won’t be qualified to give advice, only information on their product range.
Take the time to talk to a proper independent whole-of-the-market mortgage adviser, tell them what you want to do, what you’re worried about and what your end goal is, and they will make sure you get the most competitive rate with a mortgage that suits your needs.
If you’re ready to take the next step and have found the perfect Postland home for you, contact Open Door Mortgages for professional help and outstanding support:
Steve Ralph
Mortgage and Protection Adviser
New Leaf Distribution Ltd
T: 07834578585
T: 01733 609107
