1) Get advice from a good mortgage broke
It’s helpful to do your own research and understand the market, but it’s still wise to talk to a good broker. They’ll have access to all the latest deals and be able to advise you on the best product for your circumstances. While lenders pulled hundreds of mortgage products in the aftermath of the September mini-budget, they’ve since reinstated many deals (albeit at higher rates), so there’s a lot out there to choose from.
2) Don’t put it off for too long
With some lenders taking up to six weeks to process offers, it’s worth submitting paperwork promptly once you’ve chosen a deal. If rates later drop, you don’t have to go ahead with the deal. But if rates stay the same (or rise), you’ll have a good deal in place.
3) Check your Agreement in Principle is still valid
If your lender signed off on an Agreement in Principle (AiP) before the mini-budget, you should check if things have changed. Some people have discovered that their AiP is no longer valid because the recent jump in interest rates means their repayments would now be greater – and unaffordable. You may need to go back to your lender to see how much they will lend you in the current market.
4) Have your paperwork ready
Many institutions have tightened their lending criteria, so don’t be surprised if your lender requests more paperwork before processing your application. Don’t be alarmed by this; they’re just drilling down into the details to ensure you’ll be able to keep up with repayments.
5) Don’t remortgage at the last minute
If you need to remortgage, don’t wait until you have a few months left on your current deal to start the process. Contact a broker seven months before your deal is due to end and book an appointment. After a consultation, you can lock in a rate six months in advance. You don’t necessarily have to go ahead with this rate, but at least you’ll have the option to proceed with the deal if it is advantageous.
For more advice about selling your home, contact us here at Cooke & Co Estate and Letting Agents.
* Disclaimer: The information in this article does not constitute legal or financial advice.
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