01/10/2022
A write up on the termoil that's hit the mortgage market this and last week from the FT.
A difficult few weeks. Rates quoted in the morning for clients research, would be pulled by the afternoon. Fortunately for me, the support from my independent family run mortgage network has been first class, and I have a modern search and application process, so was able to select, carry out a Decision in Principle, and apply within an couple of hours, to be able to secure deals in time.
Interest rates are rising, but you can secure a remortgage 6 months before your current deal ends, but you don't have to keep it! If a better mortgage comes along in that 6 months, you can ditch the first and apply for the better one. So don't wait, secure the best deal you can and keep looking.
For purchases, some lenders are very slow at the moment, so we will need to apply for a lender and deal based on your time scales to secure your new home.
Final note is not to panic, and realise the media paint the worst possible picture of events. Interest rates are likely to rise, housing in likely to cool/fall, and we are likely to go into ressession. But this could be a blip rather than a severe crash. Let's hope this new government have learned the lessons of the past few weeks and will steer UK plc through calmer waters.
Market turmoil sparked by mini-budget saw banks scrambling and 1,688 home loans pulled from shelves
