Tuesday, October 21st, 2014
The price of homes in England and Wales continues to rise each month and many fear another housing bubble is being created. Properties are in short supply and prices are being artificially inflated. Potential sellers are holding out for higher prices before placing their properties on the market, actions that are further restricting the available supply for buyers.
The Monetary Policy Committee (or “MPC”) has indicated that buyers shouldn’t rely on historically low mortgage rates continuing indefinitely, suggesting that they’re likely to end sooner rather than later. The MPC also reports that a number of mortgage providers are already making alterations through minor increases to their longer term fixed and tracked products.
Navigating the fast moving and quickly changing mortgage environment can be tricky at best. This is where utilising the knowledge and expertise of a mortgage broker can really pay off. Mortgage brokers locate appropriate mortgages for their clients every day. They understand the available products on offer and in particular whether or not a client is able to meet or exceed the criteria of the lenders under consideration.
There’s more to consider when selecting a mortgage than simply finding the lowest rate. Buyers must evaluate any fees that apply for that type of mortgage. Also of prime importance is what the interest rate will ultimately revert to, which is typically (but not always) the lender’s standard variable rate. In short, a really good mortgage broker will factor in all of those elements before recommending the most suitable product to their client, which of course will be the one that most closely matches their individual needs and overall requirements.
Most reputable mortgage brokers will charge a fee for their advice and services, with the objective that any fee so charged will be recouped many times once the client has access to the most competitive mortgage available that is best suited to the customer’s needs.
Importantly, a reputable mortgage broker will not charge an upfront fee. These fees will only fall due when the mortgage is successfully completed and will generally be included in the mortgage advance, which can be an enormous comfort to prospective buyers who as part of the purchase will also have other costs to contend with such as Estate Agency fees, removals costs, Solicitors fees and of course for property valuation.
The best mortgage brokers do much more than assist clients in choosing the right mortgage product though. They also liaise with any third-parties involved in the transaction, ranging from Estate Agents to Solicitors to help keep lines of communication open and to ensure that the process proceeds as it should and doesn’t fall apart due to any potential misunderstandings.
In short, your mortgage broker should have access to multiple lenders and mortgage products and be able to provide any potential clients with a series of options that fits their particular circumstances.
Why not call Caboodle Finance today on 0121 308 9114 or click HERE to contact us by email.
Caboodle Financial Services Ltd
Mere Green House
46-48 Mere Green Road
West Midlands B75 5BT
Telephone: 0121 308 9114