Navigating through many mortgage deals and sorting out the heaps of paperwork can be daunting and labour-intensive. However, we’re on hand to assist you and simplify this journey.
From understanding the different types of mortgages to tips on streamlining the application process, we’re here to help you every step of the way.
If you want to purchase a home, you’ve likely encountered the term ‘affordable housing’. This refers to homes available for purchase or lease at a cost lower than their actual market value. This is often part of a programme supported by governmental or local authorities.
You’re not alone if you’ve been dreaming of owning your first home or moving to another home but find the financial hurdle daunting. Additionally, multiple schemes with varying eligibility criteria have led to confusion about how they function and who can benefit from them.
The cost of living is rising, and many homeowners and aspiring buyers are feeling the pinch. An increasing number are extending their mortgage terms to 35 or even 40 years to keep their monthly repayments manageable.
Over the past year, there has been a 10% surge in applicants choosing a 40-year mortgage term, and 38% of all applicants now favour terms of 30-35 years[1]. This shift towards longer mortgages comes as no surprise. With property prices skyrocketing faster than salaries, shorter mortgage terms have become a luxury many first-time buyers cannot afford. In fact, up to 67% of all available mortgages now allow terms of up to 40 years.
Over the past year and a half, the Bank of England’s base rate increases have led to a spike in monthly mortgage payments, making it increasingly difficult for some mortgage holders to meet their obligations.
This is particularly true for those transitioning from five-year fixed rates, who may face a sudden rise in payments if they hadn’t anticipated the increase in mortgage rates. In 2018, fixed rates were below 2%; however, currently, the best rates hover around double that for fixed and variable mortgages at 60% LTV. As a result, some borrowers may find themselves paying twice as much as before.
Since the government’s mini-budget announcement on 23 September 2022, mortgage rates have soared. It’s as if they’ve been loaded onto a financial rocket and launched into the stratosphere, transforming the landscape for prospective homeowners and current mortgage holders.
To buy a home in the UK, first-time buyers save between £26,400 and £144,500, according to new data[1]. The average deposit paid by a UK first-time buyer for a three-bed home in 2023 is £34,500 for a £240,000 home. This effectively amounts to a 15% deposit for the property. However, the amount you need to save varies according to where you live in the UK and, of course, the level of deposit you wish to pay.
