Make the most of today"s mortgage market
It's no secret that finding a mortgage is more difficult than it was, say, 18 months ago. Fears of losses amongst banks and other financial institutions, partly due to the 'relaxed' lending of recent years has caused them to tighten their lending criteria - and that means fewer mortgages on the market.
That said, it's by no means impossible to get a mortgage - in many cases, it can just take a little more searching to find a suitable deal. And due to many lenders recently cutting rates, buying a home in the present market can be a good financial move.
First-time buyers
In many respects, first-time buyers are the 'winners' in the current mortgage market. Providing they are offered a mortgage, first-time buyers are faced with lower house prices, lower interest rates, more sellers than usual, and because they don't have an existing property to sell, the sale can often go through much more quickly than sales by existing homeowners.
Some first-time buyers are hesitant to enter the mortgage market, knowing that their home is likely to lose value from the beginning. While this is quite often the case at the moment, it is not necessarily a reason to stay away from the market.
Most lenders currently require a 15-20% deposit for their most basic mortgage deals. Very few analysts predict an equivalent drop in house prices, so it's unlikely that new buyers will fall into negative equity in the near future.
Even if new homebuyers do fall into negative equity initially, this will only a significant issue if they are looking to sell their home or remortgage in the short term.
Existing homeowners
Existing homeowners potentially face a slightly more difficult situation when trying to remortgage, especially if they have fallen into negative equity.
If a homeowner is in negative equity, it can be difficult to move house or remortgage. Since selling their home will not cover the existing mortgage, homeowners must make up the difference, whether in a lump sum or instalments. Homeowners who choose to stay put while in negative equity will have to pay their lender's standard variable rate (SVR) at the end of any fixed term deals.
Providing current homeowners have avoided this situation, they should be able to benefit in much the same way as first-time buyers. In particular, the lower interest rates will mean that homeowners who remortgage are likely to enjoy much lower monthly mortgage payments.
Get mortgage advice
Above all, good mortgage advice is essential to getting the most out of the mortgage market.
With lenders more cautious about their lending, the best deals can often be difficult to find. By speaking to an expert mortgage adviser, you will benefit from the knowledge of someone with experience in the mortgage market, as well as cutting out the long hours you could spend searching for the best deals yourself.
That said, it's by no means impossible to get a mortgage - in many cases, it can just take a little more searching to find a suitable deal. And due to many lenders recently cutting rates, buying a home in the present market can be a good financial move.
First-time buyers
In many respects, first-time buyers are the 'winners' in the current mortgage market. Providing they are offered a mortgage, first-time buyers are faced with lower house prices, lower interest rates, more sellers than usual, and because they don't have an existing property to sell, the sale can often go through much more quickly than sales by existing homeowners.
Some first-time buyers are hesitant to enter the mortgage market, knowing that their home is likely to lose value from the beginning. While this is quite often the case at the moment, it is not necessarily a reason to stay away from the market.
Most lenders currently require a 15-20% deposit for their most basic mortgage deals. Very few analysts predict an equivalent drop in house prices, so it's unlikely that new buyers will fall into negative equity in the near future.
Even if new homebuyers do fall into negative equity initially, this will only a significant issue if they are looking to sell their home or remortgage in the short term.
Existing homeowners
Existing homeowners potentially face a slightly more difficult situation when trying to remortgage, especially if they have fallen into negative equity.
If a homeowner is in negative equity, it can be difficult to move house or remortgage. Since selling their home will not cover the existing mortgage, homeowners must make up the difference, whether in a lump sum or instalments. Homeowners who choose to stay put while in negative equity will have to pay their lender's standard variable rate (SVR) at the end of any fixed term deals.
Providing current homeowners have avoided this situation, they should be able to benefit in much the same way as first-time buyers. In particular, the lower interest rates will mean that homeowners who remortgage are likely to enjoy much lower monthly mortgage payments.
Get mortgage advice
Above all, good mortgage advice is essential to getting the most out of the mortgage market.
With lenders more cautious about their lending, the best deals can often be difficult to find. By speaking to an expert mortgage adviser, you will benefit from the knowledge of someone with experience in the mortgage market, as well as cutting out the long hours you could spend searching for the best deals yourself.
