Many homeowners have made more money from their homes than they jobs over the past year, with House prices rising 10.8 per cent, according to Halifax. That equates to a jump of £27,215 on average over the past year, outstripping the average pay of £25,971, according to the Office for National Statistics.
At the same time as property prices continue to rise, thanks to a combination of lack of stock and pent-up demand, a number of lenders have pulled mortgage deals, forcing up the average rate on products by 0.15 percentage points. There are now 4,838 mortgage products available, nearly 500 less than the 5,356 available at the beginning of February, according to Money facts.
Mortgage products are also hanging around for less time. With lenders pulling products after four weeks, compared with six weeks in February. Borrowers have to move quickly to secure a deal before it disappears.
Large loans for Contractors and Professionals
As house prices continue to rise, affordability could become more of an issue. While the Bank of England is considering scrapping rules limiting how much you can borrow when taking out a mortgage. This will take some time to come into force.
However, while there is much uncertainty, there is no need to panic. It is important not to rush into any decisions. While rates are edging upwards, they are starting from a very low base. Those coming to the end of a five-year fixed-rate deal may still be able to secure a competitive product as the average rate is still 0.05 percentage points below where it sat in March 2017 at 2.93 per cent.
It is important to seek advice, whether you are taking out a new mortgage or looking to remortgage. A whole-of-market broker such as AWS Private Finance will be able to advise you as to get the best mortgage for your circumstances, and we have particular experience in arranging large loans for contractors and professionals. A mortgage rate can often be booked up to six months before you need it. So it is worth planning ahead before rates potentially rise further. Please get in touch for more information.
