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What Are Your Mortgage Options?

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Whether you are a homeowner or a homebuyer, what are your mortgage options?

As we enter an (almost) post covid world the property landscape has remained buoyant.

Last year interest rates sat at a historic low. However, in December 2021 the Bank of England (BOE) made the decision to start increasing interest rates – and rates are expected to keep rising.

What does that mean for mortgages and what are your mortgage options?

A Snapshot of the Current Climate

The Nationwide House Price Index recently revealed that annual house price growth has increased to 14.3% from 12.6% in February 2022.


“Despite a tough economic backdrop, house price growth remains resilient and has even outpaced inflation. The fact we are still seeing such a level of activity in the market is likely because the availability and cost of mortgages have remained consistent throughout, ensuring products remain accessible. However, unless more strident measures are taken to tackle inflation, only time will tell, whether price growth will continue in the long run.

Households have seen their discretionary income fall by 19.5%, or £850 per year. Therefore, it is difficult to see how this will not start to impact the house buying pipeline, as buyers are forced to clamp down on their expenditure. For many, moving home and upsizing is often a luxury. With little room for maneuver, the recent Spring Statement provided little protection for households against increasing inflation. This was particularly the case for middle income earners, who are typically next time buyers, and consequently this section of the property market could see even greater strain in the coming months.”

Amanda Aumonier, Head of Mortgage Operations at Move iQ’s recommended online mortgage broker, Trussle

How much could you borrow?

Whether you are borrowing for a new mortgage or remortgaging on our existing property, seeking advice from a mortgage adviser is always recommended.

They will look across multiple lending options and find the right deal based on your circumstances.

Interest rates are frequently changing, an adviser will be aware of what’s available and when deals will end. It’s worth tapping into this knowledge and foresight!

Our recommended mortgage advisers are online with a team of experienced advisers – they offer fee-free advice in 24 hours and a decision on your mortgage in 5 days. Or they will pay you £100! Terms and conditions apply to the mortgage decision promise.

Mortgage Quotes

Homebuyer mortgage options

There’s been some good news recently for hopeful homeowners. 

Green deals

Going green could help you save. 

If it’s a cheap deal you’re looking to secure, a ‘green’ mortgage could be your answer.

Green mortgages can offer lower mortgage rates, cashback when you take out the mortgage, or additional borrowing at lower rates. NatWest, Halifax and Barclays offer green mortgages, with NatWest offering a reduced rate on a two-year or a five-year fixed-rate mortgage, along with cashback.

More fixed-rate options

In the outbreak of coronavirus, mortgage deals on the market halved. However, more options for some 10-year fixed-rate mortgages have some to the market, which might suit you if:

  • you’re looking for a low-cost option
  • looking for long-term security
  • you aren’t planning to move in the next 10 years

Of course, this isn’t for everyone. There are potential issues, including a lack of flexibility and ERCs (early repayment charges)

A mortgage adviser will be able to help you decide which is the right option for you.

Mortgage Quotes

Shared-ownership mortgages

First-time buyers with lower deposits (less than 10%) are the ones who will feel the biggest impact of any house price growth

However, shared ownership could be the answer you’re looking for. 

Shared ownership mortgages have a number of benefits, including bringing down the size of the deposit a buyer needs (5%) and helping more people to get on the property ladder. 

Further help for first-time buyers

From April 2021, the Help to Buy scheme was limited to first-time buyers alone, rather than all buyers. Regional price caps will also be introduced; up to £600,000 in London.

At the time of publication the regional price caps are as follows:

  • North East: £186,100
  • North West: £224,400
  • Yorkshire and the Humber: £228,100
  • East Midlands: £261,900
  • West Midlands: £255,600
  • East of England: £407,400
  • London: £600,000
  • South East: £437,600
  • South West: £349,000
  • North East: £186,100
  • North West: £224,400
  • Yorkshire and the Humber: £228,100
  • East Midlands: £261,900
  • West Midlands: £255,600
  • East of England: £407,400
  • London: £600,000
  • South East: £437,600
  • South West: £349,000

Homeowner mortgage options

If you’re a homeowner and feeling anxious about your finances, our mortgage advisers have put together some mortgage options top tips for you:

  1. You can usually remortgage a full six months before your deal finishes. The advice is to take advantage of the current deals sooner rather than later. Previous research found that people can save an average of £3,500 a year by remortgaging. You may have to pay an early repayment charge to your existing lender if you remortgage.
  2. A 5-year fix could be a very good option in the current climate. With interest rate rises and high inflation, a steady, unchanging monthly payment can ease the worry for many. There are some great 5 year deals on the market, especially with a slightly higher LTV, so committing to a little extra monthly payment now could in turn be a great relief should rates and the price of living continue to rise.
  3. Do you qualify for a green mortgage? A green mortgage rewards you for having an energy-efficient home by offering you more favourable rates. Check the status of your property, if it’s an A or B EPC rating, savings could be made.
  4. Investigate part and part mortgages. They are not suitable for everyone, and lenders will want evidence that you can still comfortably keep up with your monthly payments, part and part mortgages are offered by some lenders and can be an effective way of reducing your monthly payments. It’s where some of the loans is repayment and some interest only. Good brokers can fit these products to suit your needs and then make sure you have an overpayment clause to allow you to take advantage and pay off more when that extra income comes in. 
  5. Can you overpay your repayments? While rates are low, now could be a good time to start paying that bit extra every month, or as a one-off, if you can. Check your criteria as most mortgages allow you to overpay by up to 10% per year and you might be surprised at the amount that can be saved
  6. Consider an offset mortgage. This links your savings account to your mortgage and means lenders will treat any savings you have like mortgage overpayments. You can still access these savings, but this will affect the interest you pay. You will also need to have your savings and mortgage with the same provider.
  7. A 5-year fix could be a very good option in the current climate. With interest rate rises and high inflation, a steady, unchanging monthly payment can ease the worry for many. There are some great 5 year deals on the market, especially with a slightly higher LTV, so committing to a little extra monthly payment now could in turn be a great relief should rates and the price of living continue to rise.
Mortgage Quotes

Find the right deal for you

So, while things can feel tough there are options. We can help you explore them.

Our recommended mortgage advisers are online with a team of experienced advisers – they offer fee-free advice in 24 hours and a decision on your mortgage in 5 days. Or they will pay you £100! Terms and conditions apply to the mortgage decision promise.

Mortgage Quotes

Your home may be repossessed if you do not keep up repayments on your mortgage. Terms and conditions apply to the mortgage decision promise.

Last Updated: April 8th, 2022

Phil Spencer

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