Thinking of getting a mortgage or remortgaging? Now is the time to do it as some lenders are increasing rates on their mortgage loans ahead of the predicted interest rate rise. Here’s how to get the best deal on your mortgage.
If you’ve been reading the news, you may well have heard about rising mortgage rates. Earlier this week, some of Britain’s biggest lenders raised their rates. The Telegraph claims that Barclays has increased its two-year fixed rate from 1.17 per cent to 1.52 per cent, with Virgin Money, Nationwide, NatWest, and TSB also increasing their rates on mortgage loans.
‘We are now starting to see lenders withdrawing products and replacing them with more expensive rates,’ says MB Associates’ Sales Manager Phil Leivesley. ‘I would expect to see more lenders do the same in anticipation of a bank rate increase, and once any increase is announced.’
While this is not good news, it’s important to note that mortgage rates are still low, so you can get a good deal on your mortgage or remortgage. ‘There are still plenty of incredibly cheap products available on the market,’ adds Phil.
Finding the best rate
To find the best possible rate, talk to an experienced mortgage broker. There’s simply no substitute for specialist knowledge and expertise. They will know where to look and how to get the best rate for you.
A broker will compare rates from different providers and also look at your personal circumstances, therefore knowing what type of deal will best suit you. They will also have access to competitive mortgage deals not always available directly to consumers.
Although you may have to pay a fee, a good broker should source a mortgage loan that will save you money in the long run, therefore making it worth your while.
Whole of market
Make sure you use a broker with access to whole of market, which simply means they have access to the entire mortgage market and can therefore explore many different options.
Our advisers at MB Associates access whole of market rather than being tied to a restricted panel of lenders.
Another reason to use a broker is they will handle your mortgage application for you and keep you updated on the progress of your application. Once you’ve provided them with the relevant paperwork, they will handle everything else which can alleviate some of the stress of applying for a mortgage.
Whatever you decide, don’t leave it too long to act. Make the most of the fact that there are still competitive mortgage loans available. ‘A bit of urgency is required as lenders can withdraw products with very little notice,’ says Phil. ‘It’s incredibly important therefore that borrowers organise themselves and gather together all of the documentation they need to support an application as a product recommended by their broker can disappear with little or no notice.’
For more advice and information on getting a mortgage, please contact us.