We have been talking to our customers and many of them have been concerned about the change in mortgage interest rates and the rising cost of living, and are confused about their options.
We want to give you some practical information so that you can plan for your new home move or to go through the process of re-mortgaging.
Here are a few ideas that our customers have found useful:
1. Sourcing the best mortgage deal. There are around 5,000 mortgage lenders in the UK with the largest lenders being Lloyds, Santander, Nationwide, Barclays, NatWest and HSBC. Whether you are looking for support from larger banks or more diverse lenders, it is important you do your research. There are many websites you can find some useful guidance on, these include:
MoneySavingExpert
Which.co.uk
MoneySuperMarket
Given the current climate, it is worth you looking around to ensure you have the most suitable mortgage for you. When doing your research consider if you are locked into your current mortgage for a particular term. If you move home or remortgage during a fixed rate term an additional fee may be payable.
2. What types of mortgages are available? There are various mortgage types to suit your own individual needs, including variable and fixed-rate mortgages. For variable mortgages, there are generally three types-tracker rate mortgages, discount rate mortgages and standard variable rates. To choose the right one for you, it is important you seek financial guidance on which mortgage is appropriate. Getting conveyancers, like PLS Solicitors, involved in the process early, will help you get one step ahead.
To find the latest information on mortgage rates, you can use a number of mortgage calculators. Here is an example from HM Government.
3. Rising energy and living costs. Rising energy costs have been a concern for many. According to research from the Government Energy Performance Certificate data, buyers of a new build house will save on average around £2,600 per year. This is because new 84% of new build homes are rated with an EPC of B or above. When looking at a new home, whether it is a new build or a re-sale, it is prudent to look at the EPC rating of your new home. In addition, make sure you take time to research and compare energy providers. There are numerous utility companies in the UK and it is wise to check out comparison sites such as MoneySuperMarket or GoCompare.
4. On-costs are often missed. Understanding the total costs of moving or re-mortgaging is important. Transparency of fees from your solicitors, financial advisers and lenders is a legal requirement – check out their website for details on their fees.
Other third-party costs such as searches and Land Registry fees, must be factored in. Respected conveyancers will give you as much detail on costs upfront.
Your mental health is really important.
Moving home and re-mortgaging can be a challenging time. If you are anxious at any stage of the legal conveyancing process, our legal advisors are always on hand to help and answer any questions you may have about the legal process.
We are here to help. We have a large team of advisers who are always here for you.
