We catch up with Trinity Financial's Communications Director Aaron Strutt, for an update on how the mortgage market is faring, what trends are appearing, and what rates are currently available for buyers.
We have had a busy start to the year helping lots of first-time buyers and next-time buyers moving up the property ladder.
Our brokers have arranged a lot of remortgages for clients capital raising for home improvements or debt consolidation.
Are borrowers taking longer-term fixed rates?
There has been a shift towards borrowers locking into five-year rates because they provide long term payment security at almost rock bottom prices. Ten-year fixes are also very cheap with the best ones priced around 2.3 per cent. If you are looking for the lowest monthly repayments, many of the lenders offer excellent two-year fixed and tracker rates.
What is the maximum income multiple the lenders are offering?
Most of the time it is possible to borrow between four and five times single or joint salaries, but some lenders are more generous. If you earn over £75,000 each year or you are a professional like a doctor or lawyer, then it is possible to borrow around 5.5 times your salary.
Do you need a perfect credit score to get a mortgage?
You do not always need to have a perfect credit history or a high credit score to qualify for a mortgage. Some of the lenders will accept a few missed credit card or utility bill payments. They may also take a missed mortgage repayment if you have a good reason for missing it.
What deposit do you need to access the lowest rates?
The lenders have generally been improving the price of their low deposit mortgages and if you have a 10 per cent deposit the rates are surprisingly cheap. If you want to access the lowest mortgage rates, you will need to put down a 40 per cent or 35 per cent deposit.
Are the lenders still offering large mortgage loans?
There is a selection of banks and building societies competing with the private banks to provide £1 million+ mortgages, and they are very active in the large loan space. One of Trinity's brokers recently arranged a £5 million mortgage for a client in seven working days.
Have long does it take to produce a mortgage offer?
More of the lenders are updating their technology to rely on computer-based valuations and online data checks to speed up mortgage applications. For those applicants with large deposits, a clean credit history and a straightforward financial situation, it is possible to obtain mortgage offers in a couple of days. Otherwise, the standard time to produce a mortgage offer is generally up to two weeks.
Do you think some of the buyers using cash to purchase properties would benefit from taking a mortgage?
Cash purchases reportedly account for between 30% to 40% of all property transactions across Great Britain, and many of these buyers may well be unaware they would qualify for a mortgage.
For many wealthy clients, cash is king, and they like that they have liquid funds available. By borrowing money, they could free up some of their savings to make other investments or purchase more properties. They could also spread the risk and potentially use their mortgage for tax or inheritance planning.
Overseas buyers could also avoid exposing themselves to foreign exchange currency fluctuations.
For further mortgage guidance from Trinity Financial and FAQs please read our blog here.
Alternatively, contact the team at WinkworthEnquiries@trinityfinancialgroup.co.uk or call 020 7267 9399.
Trinity Financial, a preferred partner of Winkworth, is one of the UK's leading independent mortgage broker firms. The team have strong relationships with all the providers and will scour the market to find you the very best deal. Trinity deal in all manner of products from first-time buyer to £multi-million portfolios and overseas mortgages. The guys also facilitate exclusive and often complex deals that can't be found on the high street.
If you’re looking for a mortgage or require some advice please do not hesitate to get in touch with the team at Trinity.
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