We’re living through strange times in the housing market where open an house allows a full afternoon of ten-minute viewings, resulting in immediate offers being put in at asking price – or above.
Long gone are the days when the buyer holds the power and a lower starting offer is negotiated up slightly and everyone shakes hands and walks away happy.
A lot of current political and economic factors are playing a part in our current housing market boom. The number of new properties coming to the market fell by a third in June this year, but with no ease on buyer demand.
We know lots of the reasons for this trend are around the Stamp Duty holiday, the Covid pandemic, Help-To-Buy and other government-backed initiatives that are designed to maintain sales activity.
These factors have increased the volume of people who are now in a position to get a mortgage application through and buy a new home.
If you’re thinking about moving house then it makes sense to get the process started sooner rather than later, because shrinking supply is expected to continue driving up prices – meaning less choice and more expense for you as a buyer.
Getting the right advice for you
Talking to a broker early can make sure you’re ahead of the game, helping you to decide, unequivocally, whether a first home or a larger mortgage is a realistic option for you.
Sorting out your finances, and any debt, can put you in the best position to make you an attractive buyer, and pip others to the post.
Right now, it’s often not enough to turn up to a viewing and put in an offer without either having a mortgage in principle agreed or being a cash buyer. In fact, some estate agents may not even consent to a viewing without being confident you’re able to proceed to completion.
If you’re thinking of selling your current property, get it on the market sooner rather than later – having your own house on the market, or having sold it already will give you a lot of negotiating power with your forwarding purchase.
Making your move
In order to make the right choice for your personal circumstances now, and those in which you may find yourself in the future, you need to consider a number of factors.
Set-up and early exit fees – this can impact how long you need to be in one position without moving house or paying off amounts of your mortgage.
Flexibility – you need to know about the Early Repayment Charges, this could be a decent percentage of the loan if you want to get out of it early.
Unique terms – are there any special terms attached to the product you’re considering?
Commitment – what level of certainty does that product give you and what is having that certainty worth to you?
Lifespan – most mortgages have a shortlife; fixed rate, tracker and discount mortgages usually only run for between two and five years. Whatever the term is be prepared with a plan for when it expires.
A professional mortgage adviser will use their comprehensive knowledge of the market to identify the mortgage product most suited to your needs – marrying affordability with flexibility.
And when your first product does expire, we’ll get in touch and assess the mortgage market for your next deal without you having to do any research yourself.
With a buoyant market and low interest rates right now, it’s the perfect time to make a move and having the right advice can give you the confidence to put in the appropriate offer and secure a mortgage deal that makes financial sense to your future.
Oportfolio Limited is an appointed representative of Primis Mortgage Network, a trading name of First Complete Limited which is authorised and regulated by the Financial Conduct Authority. Your property may be repossessed if you do not keep up repayments on your mortgage.
Oportfolio Ltd fees are payable on application. We charge a broker fee for property purchases of £495 and a remortgage/further advance fee of £395. Our product transfer fee is £295.
Call Oportfolio today to discuss anything you have read in this article.