Securing a mortgage

Although stamp duty is abolished until July, don’t forget you’ll still have other costs to pay when moving house, including agents’ and legal fees, surveys, and removal costs. Nationwide’s Cost of Moving calculator (search ‘cost of moving calculator’ at nationwide. co.uk) is a handy way to work out these extra costs.

While many lenders had to make changes to their mortgage offerings when the pandemic first hit, experts say the options for borrowers are opening up – especially with the government’s new incentive for 95% mortgages. “Mortgage rates are really low at the moment so borrowing is fairly cheap – although lenders will always test that you can borrow at a higher rate should interest rates rise,” says Joanne Leek from Ipswich Building Society.

What’s more there’s good news for over-50s who have historically found it tricky to secure a mortgage. “Many lenders now have no upper age limit for mortgage applications and will often allow pensionable income to be included in your affordability calculations,” says Joanne. There’s also a relatively new type of mortgage aimed at borrowers over 55, known as a retirement interest-only mortgage – or RIO for short. These mortgages allow you to borrow against the value of your property and only pay back the interest rather than the cost of the loan itself in monthly instalments. Designed for those who struggle to qualify for a standard mortgage you only pay-off the original loan when you die or move into longterm care.

If you need a mortgage, talk to an independent financial advisor. If you’re considering moving soon, sort out a mortgage as a priority as there’s currently a backlog of applications due to increased demand.