Any time could be the right time to buy a house, according to a local mortgage broker, who is keen to highlight the fact that there is no one-size-fits-all advice standard when it comes to mortgages.
Charles Hart, of LionHart Mortgage Solutions, has mortgage advisors based at Belvoir in George Street, Corby. He believes that despite the recent hikes in interest rates, the decision to buy a home depends upon individual circumstances. He said:
“Often, outside factors override house prices and interest rates,”
“For example, where a job move needs to be facilitated, a new member of the family has arrived, or health implications require change, it could be a good time to buy for you, regardless of the market.
“While interest rates are higher than they have been over the last few years, house prices in some locations have calmed or reduced, meaning there may be some good deals available.
“Interest rates are not expected to return to the 1% products we have seen previously in the foreseeable future, so those waiting for that may miss out on their dream home.”
Rent hikes have also encouraged some lifelong tenants to take the leap onto the property ladder. Although mortgage payments are currently high, rent payments have also increased dramatically over the past few years. Charles said:
“Once you own a property you also benefit from any capital growth from house price increases. It is important to ensure your budget is assessed in detail as there is no guarantee whether rates will be higher or lower in years to come, but with so many lenders being keen to lend and offering creative solutions to help people get on the market it may well be a very good time to buy.”
For first time buyers, Charles recommends speaking to a specialist regarding your individual circumstances so you can make an informed decision about your options. There are several creative schemes and mortgage products available, such as shared ownership and shared equity properties, potential incentives such as from new-build properties, as well as the more traditional ownership methods.
Those looking to remortgage should begin the process around six months prior to the end date of their current product, due to the fluctuations in interest rates. Charles said:
“By securing a new deal early, it allows time for the market to adjust further before the new product starts. Should mortgage products increase in interest rate, you have a product secured before the rises. Should they decrease, in most cases you are able to cancel the existing offer and select a product from the updated range.
“If you leave it later than that, your available options may be more restrictive, as well as there being more stress and pressure on the decision.”
It is always advisable to take caution when considering mortgage options and think about risk factors such as personal situation changes, changing interest rates and health conditions. These can be mitigated by discussing how long to fix your mortgage for or choosing a variable rate, and insurances such as income protection, critical illness, or life assurance plans. Charles added:
“There are certain procedures and checks carried out by lenders to stress test the affordability of new applications, but this doesn’t mean they will step in to help if needed in future.
“If you are worried about paying your mortgage there is support available. We always advise speaking to your broker or lender. There is also schemes such as The Mortgage Charter which provides more leniency and options to ensure an existing mortgage can be managed.”
Charles Hart
LionHart Mortgage Solutions
Drop in to Belvoir, George Street, Corby, to speak to a LionHart mortgage advisor at your convenience.
Find out more on 01536 261666 or visit www.belvoir.co.uk/corby
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
LionHart Mortgage Solutions is a trading name of Just Mortgages Direct Ltd, which is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority. Approved by The Openwork Partnership 30/11/2023.
