Buying a home is perhaps one of the biggest financial decisions that you’ll ever make. Once you’ve put in your deposit and have started making payments, you could easily be locked into a repayment contract for one or two decades. With rising interest rates, the full amount that you pay for your house could be a lot more expensive than you might think. In today’s economic climate, it’s become even more important than ever to seek good mortgage advice to help you calculate the real costs of homeownership, but also help you make informed decisions about your mortgage choices.
So without further ado, let’s learn why getting good mortgage advice is more important than ever before.
Current Rising Interest Rates
According to Forbes Advisor, the Bank of England raised interest rates in May from 4.25% to 4.50%. This might not seem like much on the surface, but a 0.25% increase can add up to a lot of interest over several years. In addition, this is the 12th time interest rates have risen since December 2021 which is fairly recent as of writing.
Market uncertainties have also skyrocketed mortgage rates, creating an unstable economic environment that makes it difficult to determine when the best time to purchase a home is. Even though mortgage costs have undergone corrections over the past few years, lenders are starting to take advantage of them by slowly increasing the cost of deals.
Inflation is also responsible for rising interest costs. This is due to factors such as the rising costs of energy which have ultimately affected the costs of a mortgage. Housing prices have continued to rise over the past 12 months, with properties on the market seeing increases of around 1.8% or higher.
What does this mean for budding homeowners?
If you’re looking to get your first residential mortgage or remortgage your current property, then it’s vital that you seek expert advice from highly knowledgeable and well-trained mortgage advisors.
The Benefits of Working With a Mortgage Broker
Working with a mortgage broker can offer many unique benefits for those who are seeking their first mortgage or a remortgage on their existing home.
Expertise and Market Knowledge
Mortgage brokers are knowledgeable specialists that understand how the industry works. They always stay up-to-date with the latest market trends and interest rates. This allows them to offer valuable advice to you while guiding you through the mortgage process.
A good mortgage broker will help you understand all of the complex terms and processes, simplifying them down into a simple and easy-to-understand system that will give you more control and help you make informed decisions. Mortgages can be difficult to understand and the legal system around them can be challenging to navigate, hence why it’s important to work with a trained specialist.
Connections With Lenders
A mortgage broker works with multiple different lenders. This can include banks, credit unions, and even private lenders. They will provide you with access to a wide range of different mortgage products, and they’ll help you calculate the best deals that you can get from each one.
If your mortgage broker has a lot of experience, they can even negotiate deals to help you reduce costs even further. Not only does this save you a lot of time since you’re not looking for lenders, but it can also open up more options to help you save money and get better deals.
Save Time and Effort
Perhaps the biggest benefit of working with a mortgage broker is that you end up saving a lot of time and money over the course of the entire process. Searching for a mortgage is not only time-consuming, but it can be mentally draining as well. With mortgage brokers to handle the process for you, you can sit back and experience a streamlined mortgage process while someone communicates with lenders and your behalf.
So if you’re finding it hard to navigate the mortgage system and would love to save time and money, don’t hesitate to work with a mortgage broker.
Hudson Rose are an established team of expert mortgage advisors who will do all the research and heavy lifting to ensure the process is smooth and simple. So why not Give us a call today on 0330 122 9920 or book in for a chat (free of charge) with one of our expert advisors!
