Don’t miss out – take advantage of these low interest rates
37 per cent of homeowners, rising from 35 per cent from January 2011, but homeowners could be missing out on the lowest fixed rate deals on the market for decades.
Homeowners are still refraining from re-mortgaging to a fixed rate deal until the base rate starts to rise and a huge 46 per cent of homeowners have not reviewed their mortgage at all since March 2009 when the base rate first hit 0.5 per cent and 16 per cent believe the base rate is so low they do not need to worry about reviewing.
But it’s the perfect time to look at fixed rate, not only because it offers security but more importantly the base rate remains at a record low of 0.5 per cent. With fixed rates falling below five per cent for the first time in decades and the threat of future interest rate rises becoming more real, there are deals to be done.
Homeowners really could be missing out on the best fixed-rate deals out there and all because they are not seeking or receiving the right advice from an independent source.
A. You should bother to search out the right advice. it is well worth the effort.
The answer isn’t easy as for many the option to buy or rent is like been trapped between a rock and a hard place. It’s impossible for first-time buyers to provide a big enough deposit to get a mortgage, which in turn is increasing demand for rental accommodation and pushing up rents.
Rents are rising at almost twice the rate of earnings so it’s hard to save for a deposit. Partner this with inflation and savings rates at unprecedented lows the whole situation begins to look impossible.
Just to illustrate the extent of this the Buy-to-let Index recorded monthly rises in all regions for the first time on record in September.
On a monthly basis, rents rose in all regions of England and Wales for the first time on record. As a result, rents hit record highs in six regions – London, the South East, Yorkshire and the Humber, the East of England, Wales and the East Midlands.
Also Rightmove’s latest Consumer Rental Forecast shows that the gap between rental demand, as measured by search activity, and supply, measured by available properties for rent, widens further.
However more and more lenders relaxing their views on high loan to value’s, with Barclays being the latest to increase maximum LTV from 85 per cent to 90 per cent.
The forgotten option is that of parents and while the term “guarantors” maybe a bit outdated, there are a number of assisted schemes available to utilise the parent or parents.
There is talk of Government sponsored schemes, and some do actually exist on selected developments, but for the ordinary buyer looking at any house very little help from the Government exists.
As with any problem it is always a good idea to seek independent advice relating to your own circumstances and needs as every situation is different, which makes the solution unique too.
An independent mortgage broker is a good way to achieve this.