Monday, October 23rd, 2023
After the fall-out from the infamous mini budget that sent mortgage rates rocketing and in a reversal of what was happening in the mortgage market around twelve months ago, many lenders now are engaging in what could be best described as a “mini rate war.”
Leading figures in the mortgage industry and commentators alike have had much to say about these developments, particularly during the last few months as piece-by-piece mortgage rates have reduced. This shift has significant implications for anyone looking for mortgage solutions, highlighting the need for the expertise of a mortgage broker.
A reduction in inflation and a halt to what seems like an endless series of Bank of England Base Rate increases in recent years when combined with ‘softening swap rates’ seems to have encouraged many lenders to make their play to secure a chunk of what diminishing mortgage business is currently available. In these uncertain times, the role of a mortgage broker becomes increasingly vital. They serve as a bridge between lenders and borrowers, ensuring that clients get the most advantageous mortgage solutions.
Of course, simply competing on rate does not guarantee any lender will get the business they want as any prospective applicant must first meet their lending criteria and then be able to comply with any other facets peculiar to that product offering before a mortgage adviser will even consider making a recommendation.
Lender fees for securing a product are one of the other main considerations a mortgage broker will factor in when assessing what may be the most suitable and lowest cost mortgage solution that will meet the specific demands and needs of their client.
A mortgage product with a low rate and a comparatively high lender fee may be suitable for one set of circumstances, whereas a product with no fee at a higher rate may be better suited for others.
These types of conflicting considerations, which could end up costing a prospective borrower hundreds or thousands of pounds, are some of those that drive many home buyers or home movers to seek out the services of a professional mortgage broker who will be able to search across a comprehensive range of mortgage lenders, compare the different products available and then assess the likelihood of the applicant meeting the criteria of each of the lenders under consideration.
Another key factor that is likely to differentiate one lender from another when a mortgage adviser is recommending a specific mortgage is the maximum mortgage each lender will underwrite. In an environment where mortgage affordability is king, the way each lender assesses a scenario can mean that the maximum amount on offer could vary from lender to lender.
So, if you would like to benefit from really great advice, first check out what our clients think of the first class service they receive by viewing our testimonials page HERE.
Then, to make a confidential, no-obligation enquiry, just call 0121 308 9114 to speak with one of our mortgage broking experts today here at Caboodle Financial Services of Sutton Coldfield, Birmingham, or alternatively click HERE to contact us using the form on our website.
We look forward to hearing from you.
The information contained above was correct at the time of publication but is subject to change.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
Caboodle Financial Services Ltd
Mere Green House
46-48 Mere Green Road
Sutton Coldfield
West Midlands B75 5BT
Telephone: 0121 308 9114