Be prepared
That is the best piece I would give anyone who is looking for a mortgage at present!
Most people are aware of the current economic climate and how much the cost of everything has increased by! It was expected that inflation would have decreased in May, however it was announced in the news today that this did not happen and remained the same at 8.7%
This mixed with the Bank of England meeting tomorrow to discuss whether interest rates should increase is a worrying time for everyone. Especially people who have mortgage deals that are set to expire soon.
As a mortgage adviser who is researching mortgages everyday, I do not know from one day to the next what changes in products I will find when I open my system on a morning…everyday lenders are pulling and replacing their deals and the trend is interest rates are increasing..
I quoted a client for a 2 year fixed mortgage deal at the beginning of June at a 60% loan to value. The cheapest deal I could find was 4.73% which would mean that the true cost of the deal over 24 months would be £23,289.68.
As of the 21 June 2023 that has increased by 0.5% to 5.23% and the true cost over 24 months would be £24,168.32.
A difference of £878.64 between the two deals over 2 years and an increase in £36.61 per month!
I anticipate that we are not over the worst yet and interest rates may continue to rise!
If you are looking to review your mortgage, make sure you have all of your documents ready to go before you see your adviser so that an application can be submitted as soon as you agree on your deal! Once your application is submitted the rate is usually locked in for you.
Below I have listed the ‘most’ a lender/mortgage adviser is ever likely to ask for so you can be prepared!
Everyone…
- ID- e.g. Passport or driving license – (In date)
3 Months Bank Statements
Details of any debts, balances outstanding, monthly payments and end dates.
Employees…
- Most recent 3 Months Wage Slips
Self Employed…
- 3 years Accounts / Tax Returns, with corresponding tax year overviews.
- Details of your accountant.
This will help your mortgage adviser greatly, so that an application can be completed as soon as possible.
Just remember if you have six months or less to run on your mortgage now is the time to act as some mortgage offers are valid for 6 months!
In the words of the Scouts – Be prepared!
If you want to schedule a quick chat with me you can do at bloomfieldfinancia.as.me/chat