Lawrence Beaumont: Mortgage Broker

22/06/2023

Following today’s meeting by the Monetary Policy Committee (MPC), the base rate has been increased by 0.5% to 5%. This is the 13th consecutive increase and the rate now stands at its highest level in 15 years. This is unwelcome news when so many people are already struggling with the high cost of living.

The expected base rate increase had already caused concerned borrowers to secure mortgage deals in a hurry before interest rates go up again. This sudden rush on mortgages actually led a well-known lender to withdraw all of its mortgage products in response to such a high demand. The available home loan products in the UK are already at a reduced number since the beginning of June. Some lenders are, however, said to be relaunching their products with higher interest rates.

Whilst some lenders are planning to relaunch their mortgage products with higher interest rates, other lenders have begun reducing their rates to be more competitive. As brokers, we have access to an unrestricted range of first and second charge lenders. Some of these lenders also offer broker-only mortgage products. This means you can rest assured that you’ll be offered the best mortgage deal to suit your needs.

15/05/2023

MORTGAGE MARKET UPDATE:

Today Nationwide have announced that from 1 June, they will be updating their Green Additional Borrowing (further advance) range to offer 0% products for existing Nationwide mortgage members for the first time.

Making the right home improvements could save people money on their energy bills and reduce their carbon footprint. But for many, the initial cost can be a hurdle.

That’s where Nationwide's new 0% mortgage products come in. With no interest to pay for up to five years, they will help make energy efficient home improvements and a greener home more affordable and accessible and hopefully build towards a greener future.

The new Green Additional Borrowing products will offer:

2 and 5 year fixed term options
Loan sizes from £5,000 to £15,000
Up to 90% LTV
The entire loan must be spent on green home improvements, such as:

-solar panels
-air source heat pump
-window upgrades
-boiler upgrades
-cavity wall insulation
-loft insulation
-an electric car charging point.

There may be exclusions on the use of funds. Members can use any local or national contractor or supplier for the work.

The 0% rate is available for the initial deal period only (two or five years), and will then revert to our Standard Mortgage Rate (currently 7.74%). Only one 0% Green Additional Borrowing mortgage will be available per household, subject to the client meeting eligibility.

This is a big step that Nationwide have taken to help lead us into more cost effective housing and hopefully more lenders will follow their lead.

09/05/2023

MORTGAGE MARKET UPDATE

No Deposit? No problem
One lender has today announced that is is offering a 100% loan to value mortgage for first time buyers currently renting, who can demonstrate a track record of meeting all of their monthly rent and household expenditure for at least 12 months.

The monthly mortgage payments must not exceed what renters are currently paying in rent, over a maximum of a 35 year mortgage term.

The launch rate for this product is 5.49% with no additional fees.

This could be really positive news for many people who feel like they are trapped in the rental market and have been unable to save, especially with house prices and the cost of living continuing to rise.

I hope that more lenders will join the market soon.

29/03/2023

With the Bank of England announcing yet another interest rate hike last week, many borrowers due for a remortgage are nervous about their financial futures.

Contrary to popular belief, mortgage rates are not directly correlated to the Bank of England base rate. A more accurate indicator of what is likely to happen to mortgage rates is to look at the overall market demand.

What we have seen since the New Year is the general trend of mortgage rate reductions in an economy where the Bank of England base rate continues to increase. This is because lenders, having cleared their previous backlog, have begun starting to compete for mortgage transactions in a period of reduced market activity.

With rates trending down, good mortgage brokers will keep on top of these regular rate updates and make sure clients are always on the best rate available. By working this way, we tend to be able to save clients hundreds of pounds on their mortgage, when compared to clients who go direct to a lender.

Lawrence Beaumont
Independent Mortgage Consultant

15/12/2022

MORTGAGE MARKET UPDATE

Today the Bank of England has decided to raise their Base Rate by a further 0.5 percentage points to 3.5%.

As discussed previously, Mortgage rates are not necessarily directly correlated to the Bank of England base rate and are driven primarily by the demand for mortgages.

What we have seen since the rise to 3% is the peculiar trend of mortgage rate reductions in an economy where the Bank of England rate increases. This is because lenders are competing now more than ever for business and therefore reducing their rates to get a bigger share of the pie.

If you are on a tracker rate, you will be most affected by the base rate as they are directly correlated. If you are on a lender's discounted variable product or standard variable rate, then you could also be affected. Repayments on your mortgage will likely rise by around £25 per month (£300 a year) per £100,000 on your mortgage balance.

Existing fixed rates will remain unaffected by this increase and any new fixed rates would have likely taken these expected rises into account.

What this means is that although the variable rate options are more volatile to the changing market conditions, they are generally looking more appealing currently when compared to fixed rates.

The best fixed rates are currently starting at 4.5% whereas the current best variable rate is 3.29% so in effect you would be better off unless the Bank of England rate rose a further 1.21% to 4.71%, and you would benefit at all rates below this.

https://www.ft.com/content/f8c52506-f76b-4bb0-99fa-c92ae83236e5f

15/11/2022

MORTGAGE MARKET UPDATE

Contrary to popular belief, Mortgage rates are not necessarily directly correlated to the Bank of England base rate.

A more accurate indicator of what is likely to happen to mortgage rates is to look at the demand for mortgages. As demand for mortgages increases and the lenders begin to become inundated with business, they will usually raise their product rates to stem the flow of new applications, as we saw a couple of weeks ago.

However, what we have seen in the last week or so is the peculiar trend of mortgage rate reductions in an economy where the Bank of England base rate continues to increase. This is because lenders having cleared their backlog, are now starting to compete for business again and therefore reducing their rates to get a bigger share of the pie.

If you are on a tracker rate, you will be most effected by the base rate as they are directly correlated. If you are on a lender's discounted variable product or standard variable rate then you could also be effected.

Homebuyers and remortgagers can now take out a five-year fixed deal that charges less than 5% interest.

01/11/2022

MORTGAGE MARKET UPDATE

I hate to be the bearer of bad news but unfortunately for borrowers, it is rumoured that on Thursday the Monetary Policy Committee will voted towards a rise of 0.75% which will increase the Bank of England base rate to 3%.

The main reason for is due to the current unsustainable levels of inflation which is still predicted to hit 14/15% this winter. Mortgage lenders will likely start to increase their rates accordingly although they are not always directly correlated.

If you have a mortgage that is currently on a tracker or variable rate now might be a good time to review them. If you have a fixed rate that is expiring within the next 6 months you also may want this reviewed before the increase.

I can be reached here, on WhatsApp or by email at [email protected]

Economists predict the central bank will on Thursday announce a big tightening of monetary policy to curb inflation

23/09/2022

https://www.trinityfinance.co.uk/what-changes-have-been-announced-in-the-mini-budget/

In the face of rocketing inflation, increasing interest rates, a high cost of living and a recession, a mini-budget has been announced

15/09/2022

I absolutely do not expect this from any of my clients but never the less its always nice to feel appreciated for the work you have done! ❤️

Favourite clients moving forward!!

21/12/2021

With the base rate due to increase further over the coming years there has never been a better time to take out a fixed rate mortgage deal.

For the first time in almost 3 years, the Bank of England has increased the base rate. Rising from the historic low of 0.1% to 0.25%...