Is now the time to fix?

Posted on December 20th, 2017

It’s one of the most difficult decisions to make when taking out a mortgage – should you fix or not? There are of course benefits to both. Fixing your mortgage rate gives you the security of knowing what you’re paying each month, making it easier to budget and plan ahead. Meanwhile opting for a variable rate often means you’ll get a better rate – albeit with the risk that it might change.

Over the last few years borrowers opting for variable rates have certainly benefited from doing so. Rates have been at a record low for a decade. Indeed, last month saw the first interest rise since 2007. That’s mean those borrowers whose mortgage rates track the Bank of England base rate have seen their mortgage repayments fall.

That being said of course the record low interest rate environment has meant even fixes have hit rock bottom levels.

But with rates not on the rise – albeit slowly – is now the time to fix for a longer period?

While some economists are predicting we’ll have several more rate rises in 2018 the Bank of England has made it clear it’s not in a hurry to raise rates again. The general consensus is we shouldn’t see another rise until perhaps next August or September and any rise will again be modest.

Despite this fixes are certainly becoming more popular. According to Paragon Mortgages almost 90% of all mortgages cases are fixed rate products and the amount of five year products reached an all-time high, at 39% of all mortgages written.

If you’re looking for security and stability now could be a good time to tie in to a good deal.

Call into see us at We Know Mortgages to see how we can help you find the perfect mortgage for you.

A mortgage is a loan secured against your home or property. Your home or property may be repossessed if you do not keep up repayments on your mortgage.

What the Stamp Duty changes mean for you?

Posted on December 6th, 2017

Last month chancellor Philip Hammond announced during his Budget speech that Stamp Duty would be scrapped for first time buyers purchasing a property up to £300,000. Furthermore, first timers looking to buy in more expensive areas will pay no duty on the first £300,000 of properties up to the value of £500,000.

This is big news for first time buyers, many of whom often cite Stamp Duty as a hurdle in their plans to get onto the property ladder. Buying a property is an expensive business and having to come up with a few extra thousand pounds is often a step too far for many buyers.

Before these announcement buyers purchasing a property up to £300,000 would pay £5,000. That’s a fair chunk of change to save!

Following Mr Hammond’s announcement we’ve seen lenders quick to react. Indeed, one high street lender recently made a return to the 95% LTV market. Its clear lenders are expecting the number of first time buyer borrowers to surge and are aiming to cater for them.

If you’re looking to get onto the property ladder and you’re not sure what options are available to you or how much you can borrow come and speak to us today.

A mortgage is a loan secured against your home or property. Your home or property may be repossessed if you do not keep up repayments on your mortgage.