A homebuyer’s guide to changing mortgage rates

A homebuyer’s guide to changing mortgage rates

Mortgage interest rates are falling, which is encouraging, but recent fluctuations can be a bit unsettling. That’s why we’ve made this guide to help you understand how you can insulate against changing interest rates.

You might be able to move home without altering your mortgage.

If you want to move and take your existing mortgage rate, which is lower than the current rates, porting your mortgage can be a great option. This allows you to transfer your current mortgage to your new home. Additionally, you might be able to borrow extra funds, but keep in mind that terms vary between mortgage providers.

Fix your interest rate 

Variable interest rates are typically higher than fixed rates, and many people prefer the stability and predictability of fixed-rate mortgages. However, if variable rates drop below current fixed rates, you save money. This usually occurs when interest rates are very low. If you intend to keep your property for a short time, a variable-rate mortgage might be suitable. It’s important to remember that there are many types of mortgages to consider and a mortgage broker such as The Residential Mortgage Hub can help you understand more about your options.

Explore different mortgage types 

With thousands of mortgage products available, it’s important to find the best deal for you. An offset mortgage lets you use your savings to reduce your mortgage balance, resulting in lower interest payments. Guarantor mortgages and 5% deposit mortgages can help you in making your first or next property purchase, while interest-only mortgages are often beneficial for buy-to-let investors.

Talk to a mortgage adviser    

A larger deposit also results in paying less interest. The expertise and guidance of a good mortgage adviser can boost your confidence when applying for a mortgage. A quick discussion with them can save you both time and money!

Higher mortgage rates can lead to a better deal  

As mortgage rates decline, property prices often rise due to increased demand. Consequently, the contrast between higher mortgage rates and lower purchase prices may not necessarily result in reduced mortgage repayments while waiting for interest rates to drop. In a stable market, fluctuations in mortgage rates are typically nothing to fret about and can even present opportunities for better deals. Additionally, selecting the right property significantly influences securing your future as you negotiate the offer price. A market characterised by a balanced pace without intense competition also creates a more favourable environment for buying.

How can we help you?

Moving to your perfect home is always easier with the right help. Contact our team of industry experts today for help and guidance, simply contact our office on 01634 570057.

Important information

Your home may be repossessed if you do not keep up repayments on your mortgage.

There may be a fee for mortgage advice. The actual amount will depend upon your circumstances. The fee is up to 1% but a typical fee is £598.

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