Lenders are busy undercutting each other on record low mortgage deals. Brokers are battling it out for a place at the top of the best buy tables, edging ever closer to two-year fixed deals below 1%. Despite these very attractive headline rates, it is vital that borrowers are prepared for the in-depth ‘criteria’ checks that Lenders now employ. Affordability, and the income you have to pay the mortgage, is still the Lenders top priority.
Mark Boyce commented “Having a big deposit isn’t everything when it comes to getting the best deals. Restrictions are virtually the same as for first time buyers. Low credit scores, unsecured debts, student loans, pension restrictions, school fees and childcare costs are causing problems for homeowners. The message here is to really check your credit score, get your ‘house in order’ financially and be prepared to carry out some months of window dressing and preparation (eg. paying off unsecured debts, showing financial responsibility etc). Having said that, when you are organised and ready to apply, there are some very exciting rates out there.”
The next six months could prove the best time in history to take out a mortgage, according to some experts. Fixed-rate deals have never been cheaper and variable rates have almost halved over the past twelve months.
Bank of England data shows that a typical two-year fix has dropped from 2.37% to 2.01% over the past twelve months. On a £200,000 loan, with a 25% deposit, that would save £420.00 a year. The average variable rate has plunged from 2.74% to 1.64%, chopping £1,300.00 off annual repayments.
The arrival of new challenger banks entering the mortgage market has also increased competition, driving down rates further. Experts suggest two-year fixed rates could fall below 1% while five year mortgages could go below 2%.
One of the reasons banks are able to offer mortgages at such low rates at the moment is because they have reserves of cash to loan out from the ‘Funding for Lending Scheme’.
So never a better time to investigate the deal that you might be able to secure. Do contact us and we will be able to introduce you to an Independent Financial Broker who will guide you through the process.
Sales: 49 Fore Street, Brixham, TQ5 8AG / 01803 852736 / firstname.lastname@example.org
Lettings: 01803 856112 / email@example.com
L. J. Boyce Ltd. trading as Boyce Brixham
Registered Address: Century House, Riviera Park, Nicholson Road, Torquay, Devon, TQ2 7TD
Registered in England & Wales No. 4270229 / VAT No. 141 0639 04
© 2021 Boyce Brixham. All rights reserved. / Powered by Homeflow
Boyce Brixham Covid-19 Information Regarding Viewings and Valuations
Following the latest change in government guidelines. Our Director Mark Boyce has the following message about the New Procedures and Strict Guidelines we will be following to ensure the safety and well being of our Staff, Clients and potential buyers.
"Welcome Back!As you are probably aware The Government has now lifted restrictions on Valuations & property viewings and we are now ready to safely organise these for you in line with Government and Health England guidelines. You will see links here to both The Government Guidelines and The Guild ‘Safe as houses’ Protocol (Links below). We strongly suggest that you read these prior to making appointments for valuations or viewings so that you are aware of the responsibilities that both you and ourselves must undertake.
We are talking with our vendors and many will accept viewings from now but some naturally prefer to still avoid viewings (especially if they are vulnerable or self-isolating). We have been working effectively from home but from Monday 18th May we will be operating from our offices again but urge you to call or send an email rather than visit the offices. We will only be permitted to allow into the office one person at any one time so calling or emailing may save you waiting in the street!
As before all calls for Sales will be answered on 01803 852736. Lettings can be contacted by email on firstname.lastname@example.org"
Government Guidelines Document: https://www.gov.uk/guidance/government-advice-on-home-moving-during-the-coronavirus-covid-19-outbreak?fbclid=IwAR08N1B9N3U4tyUsKG8uxVsM9HArmNiPJT6eS7JgdRv2MInZVhYusEvdFVI
Guild "Safe as Houses" Protocol: https://i.emlfiles4.com/cmpdoc/0/5/8/3/3/2/files/26128_singleoffice-guildgeneric-sixpointguide-v4-b2c.pdf?dm_i=50FU,79S5,AD1RC,S5AY,1