Rates are rising rapidly, and lenders are being forced to re-structure their deals as inflation remains high in the UK. It is important to be tactical with mortgages now more than ever, and it is important to secure the best possible rate as soon as possible. Our recommendation to clients now is to submit a mortgage application as soon as their offer is accepted, and to ensure an independent mortgage adviser reviews the market for them consistently throughout the process to ensure that you secure the best mortgage rate and best possible terms.
Our clients contacted us to help them to secure the best mortgage rate for their new property. Rates were discussed that week with our mortgage advisor who quoted a rate in the region of 4.43%. For these clients, this meant that their monthly payment would be £1,850 which was manageable for them.
The clients decided not to act immediately, and left it for a month while they gathered their documents together and instructed their solicitors etc. Due to the clients delaying the process by not being organised before the initial mortgage enquiry, by the time they were ready to proceed the rate was 5.40% and their projected monthly payment had increased to £2,100.
So, over the course of 2 years, that will end up costing these clients an extra £6,000 for exactly the same house and borrowing amount. An extra cost that they could have avoided by being more organised with their documents and with making other arrangements such as solicitors earlier.
How We Help Our Organised Clients
But for clients that stuck to Oportfolio’s advice and got moving with applications asap, we have managed to save them a lot of money by jumping on and securing the most competitive rates in the market, before they can rise even further. It is extremely important to BE ORGANISED before your mortgage application in the current mortgage market. If you are looking at property, get everything lined up. i.e. research your solicitors and have it in your head who you plan to use. And also start pre-emptively getting your documents together that all the mortgage lenders will need (income proof, ID etc). Not quick enough for you? There is even one lender that will sometimes allow you to secure the rate before you have even found a property!
So this is definitely worth considering at the moment. There is no commitment to any one lender before completion happens, so you don’t have to continue the purchase with a certain lender if other offers a more competitive product.
Speak To a Mortgage Advisor For Help Getting the Best Mortgage Rate
We are on hand to help and provide independent advice for you. We will make sure you secure the best terms possible and keep our eyes on them markets so you don’t have to worry. Call our team today to see how we can help you to avoid paying above the odds for your mortgage.