Virgil Stephens - Finance Advice Centre - Mortgage Advisor

08/01/2024

Mortgage swap rates, also known as swap indexes, are a key factor influencing the interest rates available on mortgage deals. Swap rates essentially represent the rate at which banks can obtain fixed-rate funding on international money markets over set periods of time.

As major mortgage lenders rely on the money markets to raise funding for fixed rate mortgages, the swap rates heavily impact the rates they can offer their mortgage customers. When swap rates rise, lenders' funding costs increase so they will generally increase their fixed mortgage rates. Similarly, if swap rates fall, this makes raising fixed rate funding cheaper for lenders so they can reduce fixed rate mortgage pricing.

Monitoring swap rate movements is therefore crucial in predicting where fixed mortgage rates are headed.

So in summary, mortgage swap rates indicate the wholesale funding costs for lenders providing fixed rate loans. Their fluctuations up and down drive changes in the fixed rate mortgage deals available to borrowers.

I am a whole of market adviser. This means I can access every deal on the market & will recommend the most suitable one available to you.

Contact me today for your free mortgage consultation.

*As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments*

04/01/2024

The Bank of England (BoE) is the UK's central bank. Our mission is to deliver monetary and financial stability for the people of the United Kingdom.

04/01/2024

New Year, New Lender? Why You Might Want to Consider Remortgaging in 2024

As we enter 2024, many homeowners may find their fixed rate mortgage deals expiring. With the Bank of England base rate now at 5.25%, new fixed rate deals are likely to be higher than a few years ago. Homeowners could consider whether remortgaging makes sense for them.

Remortgaging simply means switching your mortgage to a new lender when your current deal ends. This can potentially secure a better interest rate than your existing lender may offer. It also provides an opportunity to reassess your mortgage needs as circumstances may have changed.

A 'product transfer' keeps your mortgage with the same lender but moves you onto one of their new deals when your current one expires. This can be quicker and simpler than remortgaging but may limit access to the most competitive interest rates available on the wider market.

Whether remortgaging or a product transfer makes more sense will depend on your personal situation. With many fixed rates ending in 2024, it's worth homeowners researching the options so they can secure the most suitable deal for their needs and circumstances. Paying attention to both interest rates and overall fees provides vital context when comparing new mortgage products.

I am a whole of market adviser. This means I can access every deal on the market & will recommend the most suitable one available to you.

Contact me today for your free mortgage consultation.

*As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments*

Source:

The Bank of England (BoE) is the UK's central bank. Our mission is to deliver monetary and financial stability for the people of the United Kingdom.

28/12/2023

Important mortgage update for homeowners

If your fixed rate mortgage is ending in 2024, it may be prudent to start reviewing your options now. Securing a new product early allows you to take advantage of current rates and make an informed decision about what works best for your situation. Most lenders allow you to change product once you are in the last 6 months of your current deal.

With the Bank of England base rate now at 5.25%, homeowners coming off fixed rate deals may see an increase in their monthly payments unless they switch to a new fixed rate. Acting in advance rather than waiting until the last minute gives you breathing room to explore alternatives thoroughly.

Lenders understand many households are concerned about budgeting effectively given wider economic pressures. Most aim to provide existing borrowers with product transfer options to support retention. However, taking a whole of market view with our brokers may uncover additional choices and the most suitable deal for your needs and circumstances.

The good news is that if you do lock into a fresh fixed rate now and interest rates fall prior to completion, many lenders will let you switch again to benefit from the lower rate.

Your personal circumstances and objectives are unique. So do make use of the knowledge and resources available to identify the most appropriate mortgage arrangement when your current one expires. Acting early maximizes the likelihood of an outcome matching both your situation and budget.

I am a whole of market adviser. This means I can access every deal on the market & will recommend the most suitable one available to you.

Contact me today for your free mortgage consultation.

*As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments*

25/10/2023

What is a Tracker Mortgage?

A tracker mortgage is a type of home loan whose interest rate follows a 'tracker' which is typically the Bank of England base rate. This means the tracker mortgage rate will move up and down accordingly as the base rate changes.

With a tracker mortgage, your interest rate is expressed as a percentage fixed by a set amount above the base rate.

The main advantage of a tracker mortgage is that your payments directly reflect changes in the wider economy. If base rates fall, your payments fall too. However, the opposite also applies - your payments will increase if the base rate goes up. This differs from a fixed rate mortgage where your payments stay the same throughout the fixed period, normally 2 to 5 years.

Some key things to know about tracker mortgages:

- The interest rate on a tracker mortgage will change every time the benchmark rate it follows changes. This means your payments could go up or down. Make sure you could afford for rates to increase.

- Many tracker deals do not charge early repayment charges. This provides flexibility if you wish to pay off or switch your mortgage. Always check the small print.

Overall, a tracker mortgage provides an alternative option to consider if you want the flexibility of your payments changing along with interest rate movements. Speak to a professional mortgage adviser to discuss your specific situation and needs in detail, and review the pros and cons of different types of mortgage.

At Finance Advice Centre we are whole of market. This means we can access every deal on the market & will recommend the most suitable one available to you.

Contact me today for your free mortgage consultation.

*As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments*

31/07/2023

Today, let's talk about a common question that pops up when remortgaging: should you stick with your current lender or twist and explore other options?

Sticking with your lender might seem like the easier choice – after all, you're already familiar with them. But before you decide, let's weigh the options!

-STICK-
Sticking with your current lender has some perks! You've built a relationship with them, and they already know your financial history. Plus, they might offer loyalty incentives or deals to keep you on board. It can save you time and paperwork too!

-TWIST-
On the other hand, twisting and looking elsewhere might open opportunities! Different lenders have different deals, interest rates, and terms. You might find a better rate or more flexible options that would be most suitable to your current needs and future plans

-THE BOTTOM LINE-
Whether you stick or twist depends on YOUR unique situation! Consider factors like current interest rates, your financial goals, and potential fees. And remember, we're here to help!

At Finance Advice Centre we are whole of market. This means we can access every deal on the market & will recommend the most suitable one available to you.

Contact us today for your free mortgage consultation.

*As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments*

04/07/2023

Remortgage Costs

Average household remortgage to rise by nearly £3,000 next year.

Hold onto your wallets! Prepare for an increase as the annual mortgage repayments are set to rise by £2,900 for the average household remortgaging next year. Stay ahead of the curve and plan your finances accordingly.

Rates are now expected to peak, in mid-2024, at nearly six per cent, according to a think tank.

Navigating the world of remortgaging can be complex, but you don't have to do it alone.

At Finance Advice Centre we are whole of market. This means we can access every deal on the market & will recommend the most suitable one available to you.

Contact us today for your free mortgage consultation.

*As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments*

Source:

Total annual mortgage repayments could rise by £15.8 billion by 2026, the Resolution Foundation said