Purchasing a home, whether that be for a first-time buyer or moving house, is often labelled as one of the biggest milestones and most stressful times in a person's life. That isn’t taking into account the rollercoaster of UK mortgage rates over the past year, causing many homeowners and prospective first-time buyers to seriously rethink their decisions when it comes to purchasing.
Facts and Figures of the UK Mortgage Market Today.
A recent study carried out on 2000 adults by Market Financial Solutions, found that 64% said they struggled with stress and anxiety during the mortgage process, that number rising to 80% for first-time buyers. Two-thirds of these adults said they were searching online at least once a week to find the best rates, however, in such a volatile market at present, half of those who applied found that their desired product had been withdrawn by a lender during the process.
Around 47% of the 2000 adults surveyed said they thought lenders need to be offering more support and communication about product changes, with 69% saying that a broker felt “essential” in navigating the current turbulent mortgage market. Just over a third also said that the government wasn’t doing enough to calm the mortgage market at present.
Mortgage Market Volatility.
For many, the dream of owning a home comes with a series of daunting challenges, such as financial uncertainty, the looming complex paperwork, countless negotiations, and deadlines, and most prominent in recent months, market volatility.
The Bank of England yet again raised interest rates to 5.25% on 3rd August, from the previous 5%, this is the 14th consecutive increase since December 2021, when the bank rate stood at a tiny 0.1%. This steep increase in interest rates is a bid to tackle inflation, however, it is thought that the latest rise from the BoE is to be the last as the latest figures from the ONS (Office for National Statistics) showed that inflation fell to 6.8% in July. Another Bank Rate decision will fall on 21st September.
The mini-budget in September 2022 first kicked off market uncertainty and sent the pound crashing to historic lows and at the time forced major lenders such as NatWest, Barclays, Halifax, and Virgin Money to pull deals and bring them back to the market at higher prices. This caused many months of lenders having to increase their prices as the bank rate continued to rise in the face of inflation. However, more recently, inflation has begun to decrease, and the cost of mortgages seems to be following suit.
How Can a Mortgage Advisor Help?
By using a mortgage advisor, you can significantly reduce the amount of stress and anxiety that applying for a mortgage can cause. A knowledgeable mortgage advisor will understand the intricacies of varying mortgage products, interest rates, and lender requirements. They have the scope to approach a network of lenders, enabling them to offer a range of mortgage options tailored to specific needs. Mortgage brokers can use their industry knowledge to negotiate interest rates on behalf of the applicant and they can assist in the gathering and organising of necessary and seemingly endless reams of documents and paperwork.
TaylorMade: Specialist Mortgage Broker in Manchester.
There are endless ways a mortgage broker can help in the mortgage process and significantly reduce the burden, stress, and anxiety that so often comes along with the process. TaylorMade is an independent mortgage broker in Manchester, with years of extensive knowledge and experience obtaining the right mortgage for our clients.
Whether you are purchasing your first home, remortgaging, looking to purchase a second home, or, financing a home with a low credit rating, our mortgage brokers will compare all the mortgage deals on the market to find the ones that best suit your financial situation, highlighting the most cost-effective in today’s uncertain economic market, before letting you decide which one is right for you.
Getting a mortgage can be a pretty intense time and here at TaylorMade, we like to take as much of the stress away as possible. We are an independent mortgage broker in Manchester with access to over 70 lenders. We are with you every step of the way, offering a personal concierge service, meeting face-to-face helping you to make informed decisions and never hiding any of our fees. You will never pay more than 1.95% of the mortgage balance and our average fee is 1%, with the minimum fee you will pay being £1,295.
Get in touch with our friendly, helpful, and knowledgeable team today at TaylorMade, an experienced, independent mortgage broker in Manchester.
