Our experts cut through the noise to tell you what you need to know
With over 40 years of experience behind us and some of the industry's most quoted experts in our ranks, there's not much we don't know about mortgages.
However, we know our industry is awash with jargon, so our experts aim to keep it simple. Through this blog, social media and our monthly newsletter, experienced mortgage advisers explain the nuances of the mortgage market, how economic factors influence the availability of mortgages and get to the meaning behind regulatory changes.
Last week HSBC has announced that it is increasing the rates of all fixed rate products by between 0.1% to 0.5% . For fixed rate mortgages, especially the longer term ones, to borrow from the song, it looks like “the only way is up”. Now that might seem quite a bold statement but figures released by the Council of Mortgage Lenders (CML) just last month revealed that home loan affordability had reached an historic low for both those looking to get on and those already on the UK housing ladder.
As the financial markets were betting heavily on a Remain win their response is likely to be much more dramatic after the Leave victory. The FTSE will initially suffer a sharp fall (as it often does post big changes) but the price of government stock will rise, hence yields will fall. This is partly as a result of a flight to safety as the market perceives increased risk but also because it now expects interest rates to remain low for longer. Uncertainty over economic activity and indicators will probably extend for at least the minimum two year period during which our exit negotiations will take place.
After months of campaigning we finally know that the United Kingdom has made the decision to leave the European Union. That news and the uncertainty that is likely to follow the two years of negotiation is expected to be viewed unfavourably by the financial markets. While it might be several days, weeks or months before we know what the full impact of a Brexit will be, we can predict at least in the short term, that interest rates will rise, banks and lenders will be more cautious in lending and it could become more difficult to get approval on a new mortgage.
So as we enter the second month of the new year already it’s interesting to see how things in 2015 are shaping up already.
It's an exciting time as we have some banks coming back into the intermediary market after time out, and this can only be a good thing for our clients.
Read about the invasion of long term fixed rates and how the number of 10-year fixed rate mortgages has increased by 300% and competition has grown significantly over the last year. Find out more by calling our John Charcol consultants or to discuss options.
One of the first questions people ask us when they are embarking on a house purchase or re-mortgage is how much they can borrow. I always give the same answer: it depends.
A new year and a new fitness regime go hand in hand and while most of the fitness programmes will make your pocket lighter and your body fitter, our New Year's plan of action for a healthy mortgage should add some extra cash to your budget releasing those endorphins - but with less sweat!
Another one of my colleagues has recently dealt with a far more unpleasant situation regarding a valuation going wrong. He was helping out a lady to buy a new buy to let flat in Stratford, East London. This client lives in the...
A house is only worth what someone will pay for it. Seems fair right? So, if that’s the case, how can a property can vary in value by over £1m in the space of just three weeks? Step forward two different surveyors, with very...
The blog postings on this site solely reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.