What Will Mortgage Rates Be Like in 2023?

While it’s not possible to provide any guarantees about future mortgage rates, economists are broadly in agreement with each other in saying rates should start to come down in the new year.

In October, following the mini-budget, rates soared to over 6.5% in some cases. But the best mortgage rates on offer now (16/12/22) are as low as 4.55%.

Despite more base rate rises expected from the Bank of England throughout 2023, though, the most competitive mortgage rates are expected to keep coming down.

My Mortgage Maker is a mortgage broker in Bristol. If you live in or near the city and want to benefit from the best mortgage rates, get in touch.

Trying to find the best mortgage deal without the help of a broker is tricky. This is partly because brokers have good knowledge of all the products available, but also down to the fact that some lenders offer exclusive deals through brokers that you can’t get by applying directly.

With rates higher than we’ve become used to right now, finding the best mortgage deal is more important than ever. To discuss your mortgage or remortgage options, call today.

How Do Mortgage Lenders Calculate Affordability?

Each lender has their own way of working out mortgage affordability. The simplest systems begin by using what are known as income multiples. Typically, the maximum you can borrow is 4 -4.5 times your income. Depending on which lender you use, you may be able to include income from a second job or some state benefits when working out your maximum borrowing capacity. 

But this is just a start. Lenders will also need to examine your expenses to make sure you will be able to keep up with your repayments.

While your credit history, age, and deposit amount don’t directly impact mortgage affordability, they can influence the rate you are offered. And, of course, a higher rate means higher payments which will affect whether a loan is affordable.

As there are so many variables, you’re advised to speak to a mortgage broker who will help make sure you apply to the right lender according to your circumstances.

At My Mortgage Maker, we help people looking for a mortgage or remortgage in Bristol and the surrounding areas. Get in touch to discuss your options and how much you can afford to borrow.

Credit Reports Explained

If you’re applying for a mortgage, it’s important that you understand your credit report and how it could affect your chances of approval.

Essentially, your credit report is just a database of information detailing your last six years’ worth of credit and how you’ve managed it. It includes all types of credit such as loans, credit cards, mobile phone contracts and some monthly insurance policies – as well as mortgage payments if applicable.

It’s usually a good idea to check your credit report before applying for a mortgage so you can deal with any discrepancies that might harm your chances of success.

But credit reports are just one aspect of a mortgage application. Mortgage affordability is also a key part of a lender’s decision on whether to agree a home loan – as is the amount of deposit you have.

Each lender has its own eligibility criteria and attitude to risk too. That’s why it’s best to speak to a mortgage broker before applying. This is because, if you apply to the wrong lender and get rejected, this will leave a mark on your credit files. Lots of rejected applications in a short space of time can actually damage your chances of getting a mortgage.

At My Mortgage Maker in Bristol, we will take time to assess your situation before contacting the right lender to give you the best chance of being approved.

Get in touch today and let’s get you moving.

What Are the Benefits of an Agreement in Principle?

An agreement in principle (AiP) is not essential but can help to speed up the process of buying a home. Sometimes known as a decision in principle (DiP) or mortgage promise, an AiP is an official document from a mortgage lender that shows (in theory) how much you can afford to borrow and can help you calculate mortgage affordability.

There are two main benefits of an agreement in principle:

1. It helps you understand your purchasing power and price range
2. It shows estate agents and sellers that you are a serious buyer

It can be particularly useful if you are a first-time buyer or have a history of bad credit, as it will allow you to look for your next home with the confidence that it will be approved for a mortgage.

While an agreement in principle does not guarantee your mortgage application will be approved, provided the information you give is correct and your circumstances don’t change, the actual application process should be quick and easy.

My Mortgage Maker is a mortgage broker in Bristol. We can help you work out your borrowing power and secure an agreement in principle to get you started on your journey to home ownership.

To discuss how we can help you get on the first rung of the housing ladder, call today at 01225 962 532 or enquire online.

What is the Maximum Mortgage You Can Borrow?

Unfortunately, there is no single answer to this question as there are literally thousands of mortgage products out there and each lender has its own way of calculating affordability and risk.

As a guide, however, most lenders use income multiples of between 4 and 5 times your income to work out your maximum borrowing capacity. So, if the joint income of all borrowers is £50,000 and the lender uses an income multiple of 4, you could borrow up to £200,000.

But it’s not quite that straightforward. Lenders will also want to assess your credit file and look at your monthly expenditure. Calculating affordability is crucial and, if you have lots of existing commitments, this could prevent you from borrowing the full £200,000. Some lenders, though, might allow you to consolidate other debts into your mortgage to help you manage your monthly payments.

With so many variables, the only way to make sure you get the best mortgage at the lowest rate is to get advice from a qualified mortgage broker.

At My Mortgage Maker, we help customers in Bath, Bristol, and Woking secure the best mortgage deal possible. Get in touch today and chat with an expert about your mortgage or remortgage.

What is the Best Type of Mortgage for a First-time Buyer?

There is no single answer to this question as the right mortgage product depends on your individual circumstances. If you’re looking to buy your first home in Woking, Bath, or Bristol, we can help you assess your current situation and decide on the best first-time buyer mortgage for you.

For example, you can buy your first home via one of the government Help to Buy schemes even if you have only managed to save enough for a 5% deposit. In some cases, you might be able to borrow 100% of the property’s value.

If, on the other hand, you have a sizeable deposit, you may be able to take advantage of lower interest rates.

In some very rare cases, you may even be able to take out a first-time buyer interest-only mortgage.

There are many variables when it comes to deciding which is the best mortgage for a first-time buyer and the best advice is to speak to a mortgage broker who can look at all options and make sure to get the best deal available to you.

Contact My Mortgage Maker today and take your first step at getting on the property ladder.

What Affects Whether You Get Accepted for a Mortgage?

Mortgage lenders look at a number of factors when deciding whether to approve your mortgage application. These include:

·         Income – most lenders times your salary by 4.5 to work out the maximum you can borrow, although in certain circumstances this can be higher

·     Affordability – they will also check your monthly income and expenditure to confirm you can afford the repayments, this is known as mortgage affordability

·       Deposit amount – the larger your deposit, the more chance you have of being approved

·        Loan to value – this is the amount you borrow expressed as a percentage of the property’s value

·         Credit history – arrears, defaults, and missed payments on existing or previous credit agreements may not stop you from getting a mortgage but might mean you have to pay higher rates

The best way to make sure you get the best rate possible for your circumstances is to speak to a mortgage broker.

If you’re looking for a mortgage in Bristol, come to My Mortgage Maker for expert advice from a qualified mortgage broker with years of industry experience. 

What Is a Buy to Let Mortgage?

A Buy to let mortgage is a home loan for a property you purchase to rent out. It is sometimes known as a landlord mortgage, and you can get full details about the products available by speaking to an advisor. You can get a Buy to Let mortgage to rent out as accommodation, for commercial purposes, or as a holiday home.

For a Buy to Let mortgage, you generally need a larger deposit than you would for a residential mortgage (usually around 30% minimum). If you don’t have that level of savings, some lenders will consider taking a charge against another property you own in lieu of a cash deposit.

Mortgage terms are typically on an interest-only basis to keep the monthly repayments cheaper. This means you only pay the capital back when the loan term ends or you sell the property.

You can take out a Buy to Let mortgage as an individual or limited company. It is strongly advised that you speak to a mortgage broker before taking out a Buy to Let mortgage so you are clear about your responsibilities and terms of the deal, and to make sure you get the best possible rate.

At My Mortgage Maker, we help buyers find the best deals on mortgages in Bath, Bristol, and the surrounding areas.

Top 3 Questions to Ask When Applying for a Mortgage

Taking out a mortgage is probably the biggest financial decision you will ever make. So, it’s important you get it right. At My Mortgage Maker, we want to help you understand some of the fundamentals of home loans.

So, we’ve put together a list of some of the most important questions you should ask to make sure you get the best deal and the best terms on your mortgage.

     How much can I borrow?

In most cases, you can borrow 4.5x your annual salary so a simple calculation will give you an idea of how much you can borrow. However, if you are borrowing at a low loan to value (LTV), you may be able to increase that amount as the risk to the lender is lower.

     How much deposit do I need?

This varies and it is perfectly normal for first-time buyers to borrow 100% of the amount needed to buy their home. If you are able to get together a deposit to put down, though, you are more likely to be offered a more favorable interest rate. The best rates are generally reserved for borrowers who have a deposit of more than 40%.

       What’s the difference between fixed-rate and variable rate?

A fixed-rate means you know the rate of interest you will pay for a set number of years – usually 2-5 years. This is the most common type of mortgage as it provides stability and makes budgeting easier.

A variable-rate changes according to the Bank of England base rate. You will pay less when rates are low, but repayments can get high if rates rise.

To make sure you get the best deal, speak to a mortgage broker. Our advisors will discuss your circumstances and advise on the best lender for you.

For mortgage advice in Woking, Bristol or Bath, get in touch today to be matched with a mortgage broker.

Do I Need to Use a Mortgage Broker?

While there is no legal obligation for you to use a mortgage broker, it makes sense to do so. With so many different types of mortgages and thousands of home loan products available in the UK, trying to find the best deal for your circumstances without expert knowledge is a huge risk.

For most of us, a mortgage is the biggest financial commitment we will ever make, and getting it wrong can end up costing you £000s over the term of your loan. At My Mortgage Maker in Bath, we have expert mortgage advisors with comprehensive knowledge and expertise in the UK mortgage market. There are also exclusive deals available through mortgage brokers that you won’t find anywhere else.

Our mortgage advisor service stretches as far as Woking and Bristol, and we will help you find the best mortgage deal with a service tailored to your needs. Whether you are looking to buy your first home or seeking remortgage advice, get in touch today for a no-obligation chat. With just a few simple details about your current circumstances, it will only take a few minutes for us to let you know whether we can find your best mortgage deal.

What is the Property Market Forecast for 2022?

October 2021 saw the end of stamp duty holiday rates and an expected downturn in the number of properties for sale. However, the last two months of the year are traditionally quiet for property purchases, and the current forecast is that there will be plenty of property market action in 2022.

First time buyers are predicted to have access to better rates and rising inflation may encourage some people to sell. Recent years have seen significant changes to life in the UK and hybrid working models are seeing some people seek new homes that match their new lifestyle while others are looking for mortgages to help pay for home  improvements.

So, is getting a new mortgage in 2022 for you? My Mortgage Maker is a brokerage covering Bristol, Woking and the surrounding areas. We’ll determine your mortgage affordability and provide the figures that allow you to work out whether now is the time to buy, sell or remortgage.

As a mortgage broker, we’re not tied into one lender and we’ll find the best one according to your circumstances.

Whether you’re looking for a:

·         Mortgage broker Woking

·         Mortgage broker Bristol

·         Mortgage broker Bath

Now is the time to do your research and make your financial plans for 2022.

Work out the true cost of buying

So, you have your deposit saved and you’re ready to buy your first home? Well, it’s not as simple as getting a mortgage, picking up the keys and moving in. Before you go any further, work out the true cost of buying to make sure you’re fully prepared.

Fees: There are a number of fees in arranging a mortgage – from arrangement fees, valuation fees, legal fees and, of course, stamp duty and surveys. It can appear a little daunting at first, so your best bet is to seek the advice of a mortgage broker who can help you understand the various costs associated with buying a home.

Of course, there are other moving fees to consider too such as a removal van, any installation costs and whatever furniture and appliances you will need as you move onto the next chapter in your life.

Don’t let that put you off. Buying your first home is exciting and gets you on the property ladder. But it’s wise to consider all the costs beforehand to ensure you can afford your new life. And one of the most important factors is getting the best mortgage deal.

Don’t leave things to chance. Contact a mortgage advisor who can help calculate your mortgage affordability and find the best deal for your circumstances.

My Mortgage Maker offers advice and support for clients in Woking, Bristol and Bath. Get in touch today.

What Does A Mortgage Broker Do?

Taking out your first mortgage can be quite daunting. It’s a long-term financial commitment and it’s understandable that you have questions about what a mortgage is and how they work.

Put simply, a mortgage is a loan to buy a property. Usually, you will need to put down a deposit on your new home, and you will borrow the rest of the money needed to purchase it from a mortgage lender.

The best way to take out a mortgage is to visit a mortgage broker. Brokers are not linked to one lender so will be able to look at a wide range of rates that match your circumstances. Sometimes, there are also special rates that are only available through mortgage brokers. Your mortgage broker will check that you are eligible and carry out an affordability check.

After helping you decide on the best mortgage for your circumstances, your advisor will then help you through to the completion of the deal.

Mortgage broker Woking

My Mortgage Maker is a mortgage broker covering Woking and the surrounding areas including Bath and Bristol. If you’re looking to buy a home or remortgage an existing property in the area, come to us for expert independent advice.

UK Mortgage Rate War Hots Up

If you’ve been assessing your mortgage affordability, now is the time to take the plunge and visit a mortgage broker. As lenders fight for business, UK mortgage rates have dropped below 1%. Borrowers with large deposits are now able to enjoy mortgage rates as low as 0.94%.

With so much competition between mortgage lenders, and banks across the UK looking at deals to offer remortgage clients, first-time buyers and those moving home; experts are advising anybody looking for the best mortgage rates for their circumstances to speak to a mortgage advisor.

Current rates are among the lowest ever offered but each mortgage deal comes with its own specific requirements so trying to decipher the best mortgage rate as an individual can be tricky. A mortgage advisor has a deep understanding of the market and will be able to offer the best options for your current borrowing requirements and future plans. It’s worth noting, too, that many lenders have special rates that are exclusive to borrowers introduced by a mortgage advisor like Mortgage Maker.

Mortgage broker Bath

At Mortgage Maker we have expert knowledge of the mortgage business and the property market in Bath and the surrounding areas. For mortgage advisor Bath, mortgagebroker Bristol, or to talk to us about your first or next mortgage, get in touch today. One phone call could help establish your mortgage affordability and save you £000s of pounds and leave with enough to really make your house your home.

Contact Us

My Mortgage Maker Ltd,

2nd & 3rd Floors Northgate House, 

Upper Borough Walls, 

Bath 

BA1 1RG

01225 962 532

info@mymortgagemaker.co.uk

https://www.mymortgagemaker.co.uk/