why use a mortgage advisor

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Mortgage Broker Maidstone

Interest rate cuts ‘back on the table’ as inflation falls to 1.7%

 

Inflation has fallen below the Bank of England’s target of 2% raising prospects of another interest rate cut in November.

The Consumer Prices Index (CPI) showed today the cost of goods and services has risen by 1.7% over the year to September. Economists had been expecting it to fall to 1.9% from the 2.2% recorded in August.

Inflation is a good indicator of what might happen to interest rates. The Bank of England (BoE) employed its cycle of raising rates in a bid to bring inflation down after it reached a 41-year high of 11.1% in November 2022.

So, the fact it has dropped below the target should mean the central bank will have an incentive to reduce interest rates, which are currently at 5%.

Rachael Hunnisett, director of mortgage distribution at April Mortgages, said: “Inflation dropping below the Bank of England target should be good news for Britain’s borrowers and the broader property market.

“The fact that headline CPI came in well below consensus will be music to the ears of borrowers.

“Following on from slowing wage growth on Tuesday, it has put the prospect of another rate cut in November by the Bank of England firmly back on the table.”

But she warned market volatility means a cut to the base rate was not entirely set in stone.

“The past fortnight or so has once again shown how volatile markets are,” she continued, “with many lenders raising their rates to reflect market concerns around both the oil price and Autumn Budget.”

Last week some lenders increased mortgage rates in line with rising swap rates leading to suggestions the era of mortgage cuts might be coming to an end.

How will the forthcoming Budget impact interest rates?

But it is the looming budget, on Wednesday 30 October, which is introducing an element of doubt for most experts over whether an interest cut is a certainty in November. The outcome of Chancellor Rachel Reeve’s first Budget is likely to be final deciding factor for the Monetary Policy Committee at the Bank of England.

Nicholas Mendes, who is technical manager at John Charcol mortgage brokers, said: “There are still uncertainties surrounding the upcoming budget and today’s announcement is unlikely to lead to an immediate drop in swap rates or significant shifts in headline best-buy mortgage rates, following recent repricing from lenders such as NatWest and Santander.

“In the coming weeks, following the budget attention will turn to the Bank of England’s Monetary Policy Committee (MPC) meeting and the governors notes on the 7th of November. These will provide critical insights into the Committee’s views and the potential trajectory of future interest rate decisions.”

 

 

 

What to do if you are due to remortgage?

He added: “If you’re approaching the last six months of your fixed-rate mortgage, now is the time secure a new deal. Continuously review the market, or better yet, use a broker who can monitor it for you and advise when a better deal becomes available.

“While nothing is guaranteed, and various factors may delay the passing on of rate reductions, it’s important to take proactive steps to secure the best deal, rather than adopting a ‘wait and hope’ approach.”

 

Source = Interest rate cuts ‘back on the table’ as inflation falls to 1.7% – What Mortgage

 

Mortgage Broker Chatham Kent PHLS Mortgages : Clive Parish

Why You Need a Mortgage Advisor: Expert Guidance for Your Home Financing Journey

Securing a mortgage is one of the most significant financial decisions many people will make in their lives. The process of finding the right mortgage can be complex and daunting, involving numerous choices and potential pitfalls. This is where a mortgage advisor plays a crucial role. In this article, we’ll explore what a mortgage advisor does, why their expertise is invaluable, and how to choose the right advisor for your needs.

What is a Mortgage Advisor?

A mortgage advisor, also known as a mortgage broker, is a professional who provides expert advice and guidance on mortgage options. They act as intermediaries between you and potential lenders, helping you find and secure the best mortgage deal tailored to your financial situation and goals.

Mortgage advisors are knowledgeable about the various mortgage products available in the market, including fixed-rate, variable-rate, interest-only, and repayment mortgages. They also stay updated on changes in the housing market and lending regulations, ensuring they provide you with accurate and timely advice.

The Role of a Mortgage Advisor

  1. Assessing Your Financial Situation

One of the first steps a mortgage advisor takes is to assess your financial situation. This includes reviewing your income, expenses, credit score, and existing debts. By understanding your financial profile, the advisor can recommend mortgage products that align with your budget and long-term goals.

  1. Finding the Right Mortgage Product

With a multitude of mortgage products available, it can be overwhelming to determine which is best for you. A mortgage advisor will analyze your needs and preferences to identify suitable options. They have access to a wide range of lenders and mortgage products, including those that may not be available directly to consumers.

  1. Providing Expert Advice

Mortgage advisors provide valuable insights into the advantages and disadvantages of different mortgage products. They help you understand the terms and conditions, including interest rates, fees, and repayment schedules. This expert advice is crucial for making an informed decision that suits your financial circumstances.

  1. Assisting with the Application Process

Once you have chosen a mortgage product, the advisor will assist with the application process. This includes preparing and submitting the necessary documentation, such as proof of income, identification, and credit history. They will also liaise with lenders on your behalf, ensuring that the application process runs smoothly.

  1. Negotiating Better Deals

Mortgage advisors often have relationships with lenders and can negotiate better terms on your behalf. They may be able to secure lower interest rates or reduced fees, potentially saving you money over the life of your mortgage. Their expertise in negotiating can make a significant difference in the overall cost of your mortgage.

  1. Providing Ongoing Support

The role of a mortgage advisor doesn’t end once your mortgage is approved. They can provide ongoing support throughout the mortgage term, including advice on remortgaging, refinancing, or adjusting your mortgage to better suit your changing financial situation.

 

Why Use a Mortgage Advisor?

  1. Expertise and Knowledge

Navigating the mortgage market can be complex, especially for first-time buyers or those with unique financial situations. A mortgage advisor brings a wealth of knowledge and expertise, guiding you through the process and helping you make informed decisions.

  1. Access to a Wide Range of Products

Mortgage advisors have access to a broad range of mortgage products from various lenders, including exclusive deals not available to the general public. This access allows them to find the best mortgage options for your needs and preferences.

  1. Time and Effort Savings

Searching for and comparing mortgage products can be time-consuming and stressful. A mortgage advisor handles this process for you, saving you time and effort. They streamline the application process, ensuring that you receive prompt and efficient service.

  1. Personalized Advice

Every individual’s financial situation is unique. A mortgage advisor provides personalized advice tailored to your specific circumstances, ensuring that the mortgage product you choose aligns with your financial goals and needs.

  1. Stress Reduction

The mortgage application process can be overwhelming, especially if you are unfamiliar with the terminology and requirements. A mortgage advisor manages the complexities of the process, reducing stress and providing peace of mind.

 

Choosing the Right Mortgage Advisor

  1. Check Qualifications and Experience

When selecting a mortgage advisor, it’s essential to check their qualifications and experience. Look for advisors who are regulated by the Financial Conduct Authority (FCA) and have a proven track record of successful mortgage placements. Experience in the industry can also indicate a higher level of expertise and reliability.

  1. Read Reviews and Testimonials

Reading reviews and testimonials from previous clients can provide valuable insights into the advisor’s service quality and customer satisfaction. Look for feedback on their professionalism, communication skills, and ability to secure favorable mortgage terms.

  1. Consider Their Specializations

Some mortgage advisors specialize in specific areas, such as first-time buyers, buy-to-let mortgages, or self-employed individuals. Choose an advisor with expertise in the area relevant to your needs to ensure they can provide tailored advice and solutions.

  1. Evaluate Their Fee Structure

Mortgage advisors may charge fees for their services, either as a flat fee or a percentage of the mortgage amount. Be sure to discuss their fee structure upfront and understand any potential costs before engaging their services. Some advisors are paid by lenders, which may mean their services are free to you.

  1. Assess Their Communication and Support

Effective communication is crucial when working with a mortgage advisor. Choose an advisor who is responsive, transparent, and willing to answer your questions. Good communication ensures that you are kept informed throughout the process and that your needs are met.

 

 

 

A mortgage advisor plays a vital role in helping you navigate the complexities of securing a mortgage. Their expertise, access to a wide range of products, and personalized advice can significantly enhance your home financing journey. By choosing the right mortgage advisor, you can ensure that you find the best mortgage deal for your needs and enjoy a smoother, more efficient process.

For more information on mortgage advice and to explore how a professional mortgage advisor can assist you, visit PHLS Mortgages. Discover expert guidance and support for all your mortgage needs, and take the next step towards achieving your home financing goals.