Let’s face it, the world is a scary place to be at the moment! With the cost of living crisis, the fall in the value of the pound, banks pulling mortgage deals, and the rising energy bills, it’s a daunting time to buy a home or be a home owner in general. However, it’s not all bad! We’ve seen pulled mortgage deals before, and we’ve survived inflations like this before.
So, what’s exactly going on?
As a result of the mini-budget announcement, many lenders struggled to provide accurate prices, which resulted in a temporary suspension of mortgage deals. Virgin Money, Halifax, HSBC, Santander, Nationwide, and the Principality are all lenders who either stopped sales to new clients, or increased their lending rates.
Thankfully, most lenders have since returned to their regular offerings, and there are plenty of mortgage deals available to suit your needs – you just need to find the right advisors to secure the right deals for you! We might know a place…
The Cost of Living
While we, as mortgage advisors, have had to navigate the uncertainty around interest rates, the country itself has been navigating a recession. Inflation has risen to 9.9%, which is a figure that hasn’t been reached since 1982.
The reason behind this? Recovery. The country is recovering from the bleak times of the covid pandemic, which means there has been a dramatic increase in social spend. October has seen a further rise in the cost of living due to inflated energy bills, however the Bank of England has predicted that inflation will return to around 2% gradually over the next 18-24 months.
Luckily, that’s plenty of time to start getting your ducks in a row and begin planning ahead!
Preparation is Key
If you’ve read the above and have concerns or are worried about your mortgage, please don’t panic! There are a number of things that you can do to prepare yourself for the future, and we’re always on hand to provide advice and guidance.
If you’re looking for certainty when it comes to your finances, then we advise that you fix your mortgage now if possible, and if you are able. A fixed rate will offer security and stability during these uncertain times, and it will protect you from any further interest rate increases. Also, by fixing your mortgage, your monthly payments will remain consistent until the time comes to remortgage.
If you are moving house or looking to remortgage, then it’s vital that you speak to a mortgage advisor as early as possible. We like to keep in regular contact with our customers to ensure that we’re always providing them with the best possible rates and know exactly what their needs are.
First time buyer? Get in touch with us today! At Mortgage Advice Bureau Swansea, we constantly have our finger on the pulse of the housing market, so we know which lenders will be most likely to offer you a mortgage. We’re more than happy to provide our expertise and guidance, walking through the mortgage process with you side by side.
Speak to an advisor on 0808 159 4588, available 6 days a week and until 7pm on weeknights.