Making your move more affordable

August 18, 2022

With the Bank of England affordability test now removed, first time buyers may find affordability increases.

A win-win scenario for those looking to get their first step on the property ladder, the move is intended to safeguard the financial economy. For first time buyers with a lower income and good credit ratings, it increases the chance of success in applying for a mortgage.

Whilst house prices are hitting records with interest rates expected to rise, property portal Rightmove suggests that many buyers will choose to act now, with house prices unlikely to drop, as well as similar interest now being offered by lenders, for 2 and 5-year fixed rate mortgages.

Fixed rate mortgages can be preferable, giving homeowners more control over their mortgage repayments, creating financial stability during an uncertain economy.

Benefits of fixed rate mortgages include –

• Superb savings likely with total interest calculated on home equity at the start

• Great fixed rate deals available from competing mortgage lenders

• No fluctuating interest rate repayments for a set period

• Predictable mortgage costs for budgetings’ purposes

• Longer mortgage terms secured

• Choice in fixed rate terms, from 2 years up to 10

If you’re a first-time buyer, you may wish to get your finances ready. With mortgage lenders limited in the number of mortgages they can offer first time buyers, you’ll have your best chance if you act sooner rather than later.

If you’d like some financial advice on a fixed rate mortgage, we’d be happy to introduce you to our independent financial advisors. If you’re already a homeowner and would like up-to-date valuation advice, please contact your local branch.

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