The fallout from chancellor Kwasi Kwarteng’s mini-budget has brought chaos to the housing market, as mortgage deals evaporated and rates rose, disrupting homebuyers’ plans. Whether you’re a first-time buyer, a seller in the process of moving or your fixed rate mortgage is coming to an end, The Guardian has plenty of advice from mortgage experts.
A large number of mortgage deals were withdrawn from the market in the wake of the mini budget. While this has caused problems for buyers seeking a new deal, people with an offer shouldn’t be concerned. According to Scott Taylor-Barr, of Carl Summers Financial Services:
“If your application is already in with the lender, or you have a mortgage offer, then don’t panic, as your rate is secured.”
Around 75% of UK mortgages are on a fixed rate, with 1.3m due to end this year, but borrowers shouldn’t rush to move their mortgage now. According to Taylor-Bar:
“Generally, if you have a fixed mortgage with a lender, you also have an early repayment charge. Paying this to ditch your probably very low current deal, to move on to a more expensive deal, is very rarely a good move.”
Buying and selling at the same time?
Here are 10 things that could go wrong, and often do go wrong, and what, if anything, you can do to avoid them.
Buying and selling at the same time?
Here are 10 things that could go wrong, and often do go wrong, and what, if anything, you can do to avoid them.
One in five households is currently on variable rate – either a tracker or their lender’s standard variable rate (SVR). If your mortgage payments are going up, the advice is to talk to your lender about the options – possibly extending the length of your mortgage to reduce the monthly repayments.
While first-time buyers may be worried about the prospect of finding a deal, they shouldn’t despair. According to Nathan Reilly, of the Twenty7tec a platform for mortgage advisers, while there are fewer deals available, many lenders are still open to new applications.
For people who have found a property, but are worried about the prospect of tumbling house prices, Taylor-Barr’s urges caution before pulling out of a sale or seeking a price reduction.
“If you have already committed to buying at a certain price, think very carefully before rocking the boat, you’ll be kicking yourself if you end up torpedoing your own house purchase for the sake of a few grand off the asking price of a property that you love.”
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