Overall, the certainty of the election result is likely to be welcomed by the financial markets and may herald a return of homeowner, business and investor confidence in 2020.
Whatever your plans, you are probably aware that we’re still in a scenario where there are excellent mortgage deals on offer. Prior to the general election, a report conveyed that lack of persistent economic and political certainty was continuing to deter both house buyers and sellers. Albeit it also expected house prices to pick up over the next 12 months. (Source: RICS, December 2019)
Political Certainty
Whatever you may think of the election result, we now have some clarity around Brexit and the political direction being taken. With the added certainty, many people may simply want to get on with their lives and implement the property and mortgage plans they’ve possibly been holding back on, whether that’s for:
- a house move.
- improving the current property.
- buying a first home.
- purchasing an additional property.
- expanding the portfolio as a landlord.
Alternatively, you may be coming towards the end of your current ‘deal period’, have been sitting for far too long on your lender’s Standard Variable Rate (SVR), need to raise further funds, or are keen to move to a better deal.
With regard to the latter points, this is reinforced by the industry regulator, who estimated that 800,000 borrowers could switch their mortgage and make an average saving of £1,000 a year across the introductory rate period. (Source: Financial Conduct Authority, Mortgages Market Study, March 2019)
Whatever your plans, you are probably aware that we’re still in a scenario where there are excellent mortgage deals on offer. Combined with the certainty introduced by the election result, now is the time for action.
Of course, whilst the lenders are keen to do business, you still need to meet their stringent lending criteria, and that’s why it’s vital that you take advice. Particularly as it can be a confusing process, with so many product options and deal rates out there.
The Mortgage marketplace
Whilst political uncertainty may have impacted the property market, the mortgage loans sector has been in relatively good health. Remortgages are thriving as people look to lock into the lowest rates possible. The interest in remortgaging may come as no surprise when you consider that households now only move once every 20 years, up from every eight years in the 1980s.
Elsewhere, First-Time Buyers are at their highest share of housing sales since 2007, accounting for more than one in three sales (36%) and 50% of mortgages for a home purchase. (Source: UK Finance, December 2019 report)
Don’t forget Protection cover
Whether you’re still living at home, renting, or a homeowner, it makes sense to have insurance cover in place to protect your life and/or loss of an income stream.
Talk to us to hear more about this, and how we could help with any mortgage needs.
You may have to pay an early repayment charge to your existing lender if you remortgage.
Your home may be repossessed if you do not keep up repayments on your mortgage.
The post Time for Action… appeared first on The Mortgage Bureau.
https://www.themortgagebureau.co.uk/remortgage/time-for-action/
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