Normally I can think of loads to talk about, but I am a bit stuck at the moment to think of anything inspirational to say.
So lets have a summary of what Westexe Mortgages is all about and what I can see happening in the world of mortgages. If you didn’t know already Westexe has been trading from the same offices in Exeter for over 40 years, we have tons of experience and really enjoy helping people to understand and overcome the trials and tribulations of applying for a mortgage. Our clients range from inexperienced first time buyers, loyal customers returning time and time again and right up to experienced property owners and people purchasing investment properties.
Its fair to say our expertise lies in firstly really understanding our customers and their own unique circumstances, deciding with them the best way forward and helping them select the right and best mortgage for them. We will then apply and help them through the whole application process and navigate any hurdles a lender might present, to ultimately acquire a satisfactory mortgage offer.
Despite the Bank of England currently putting on hold base rate increases we are seeing fixed rates creeping up. This is largely due to the ending of the banks Funding for Lending Scheme, where mortgage lenders were able to borrow cheap money, which in turn kept rates artificially low. Lenders are now obliged to pay this money back to the Bank of England and of course the cost for this is being passed on in the form of higher interest rates for mortgages. Where we have quoted customers a short while ago we are finding that the original rate is no longer available and we are having to settle for a higher rate today. This must surely be saying something to people who feel that they are lucky to be paying a low variable or tracker rate mortgage and are saying to themselves we will wait until the base rate goes up before considering switching to a fixed rate. The lesson here is, don’t leave it too late or you might find you have already missed the best deals that were available.
We talk to many industry insiders and many estate agents and it seems that the market for properties for sale is very subdued at the moment. This may be due to lots of uncertainties, one being the prospect of Brexit, a lot of people seem to sitting tight and waiting to see what happens. This is a very understandable reaction and rather than move, they are looking at ways to improve or extend their current property. This is an area of the mortgage market that is very buoyant at the moment and mortgage lenders subject to affordability are very happy to help in lending additional funds for this. This is usually arranged as a re-mortgage and at the same time selecting a good competitive fixed rate or applying to their existing lender for a further advance or sourcing a secured loan.
Personal household debt in the UK has been rising for years and is causing great concern. We see this reflected is the governments and regulators desire to put a cap on it and control the more unscrupulous lenders. In the right circumstances and subject to affordability many lenders are prepared to offer solutions for debt consolidation. This is normally arranged in the form of a re-mortgage, a further advance or a secured loan, great care is taken by ourselves to ensure that any consolidation is the right thing for our customers and to ensure that they understand and can afford what they intend to do.
With more lenders now prepared to lend into retirement, this could prove to be the salvation for older applicants who are coming towards the end of their mortgage especially if they still have an interest only loan. Of course this is subject to affordability and lending is based on retirement income.
More and more lenders are offering competitive rates to their existing customers in order to keep them as customers and in their existing property. This is called a product switch and providing that there is no material change to the mortgage it does NOT involve any further underwriting and is very quick and simple for us to arrange. This is without doubt increasing in popularity and we are helping more and more customers to do this as it is a very low cost and straight forward process. We strongly recommend that it is arranged through ourselves as we are able to directly deal with the lender and like all things we know what we are doing and its a lot easier than dealing with the lenders direct.
As you will have just gathered being lost for words doesn’t last long for me as my wife will testify, but I hope that this article highlights the changes that are happening in the mortgage and property market. I can’t predict what is going to happen in the future, but I can assure you of a very prompt and professional service from Westexe Mortgages.
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