mortgageadvisor Archives - Choice Mortgages UK

The Evolution of Mortgage Lending in 2024

15th March 2024

Notable shifts in mortgage lending in the UK are poised to impact the real estate market in 2024. As we anticipate a return to pre-Covid lending levels, understanding these changes is crucial for anyone looking to purchase property and with the help of this comprehensive overview, we’ll explore what lies ahead.

Current trends and predictions

In 2023, UK mortgage lending experienced a significant downturn, with a staggering 23% decrease. As we move through 2024, projections suggest an additional 8% decline, signalling a challenging period for the industry. This decline is expected to continue until a modest recovery in 2025, when figures may return to mid-2010 levels, ranging between £120-130 billion.

Factors influencing the decline

Affordability challenges

Affordability remains a primary concern driving the decline in mortgage lending. Factors such as higher interest rates, elevated house prices relative to income, and increased cost-of-living expenses have created a constrained borrowing environment for prospective homeowners. The current Bank of England base rate is 5.25%.

In navigating these challenges, individuals and families can benefit from partnering with Choice Mortgages UK, an independent mortgage broker committed to offering tailored solutions and accessible support. Additionally, Choice Mortgages has over 30 years of experience with finding clients the perfect mortgages, taking into account their financial well-being and the current market conditions.

Uncertainty ahead

The prospect of a general election before 28 January 2025 adds further uncertainty to the housing market. Historically, such events have prompted a temporary pause as buyers and sellers await clarity on how political changes might impact the economy and property values.

Transaction volumes

The impact of affordability challenges and uncertainty is reflected in transaction volumes, which are predicted to hover around 1 million in 2023, 2024, and 2025. This represents a 15% decline compared to pre-Covid averages.

For those entering into a property transaction, Choice Mortgages UK’s team of experienced advisers stands ready to address both straightforward and complex queries, ensuring a seamless process tailored to your individual needs. Choice Mortgages will get to know you and understand your requirements.

Also, you won’t have to deal with lots of different people and departments – you’ll get a same-day response whether it’s answering a call, responding to your email, or inviting you to leave a detailed message.

Expert perspectives

Despite these challenges, Emma Cox, managing director of real estate at specialist lending bank Shawbrook, has a positive outlook for the year ahead, referring to the dip in residential property transactions as, “a minor speed bump in an otherwise positive start to the year.”

Furthermore, James Tatch, Head of Analytics at UK Finance, acknowledges the difficulties faced by mortgage borrowers and anticipates a gradual improvement in affordability by 2025.
Remaining with a bright outlook, Lucian Cook, Head of Residential Research at Savills, highlights the stabilising effect of falling inflation on mortgage rates, suggesting that the housing market may have passed its peak difficulties.

Looking into the future

As we forge forward, it’s vital to stay informed and seek expert advice. Choice Mortgages UK offers free consultations, flexible communication options, and access to a wide range of lenders, ensuring unbiased and personalised solutions for every client.

So, while challenges persist, proactive decision-making and strategic partnerships can help you to navigate the real estate market with confidence. For reliable guidance and support, trust Choice Mortgages UK to help you find the right mortgage solution.

The benefits of buying a home over renting

21st March 2023

For many people in the UK, the decision to take the plunge and invest in owning property versus renting marks a significant milestone in their lives. Embarking on this journey can be complex and riddled with questions. However, with a little due diligence and the right help, it is possible to forge forwards confidently and mitigate some uncertainty along the way.

So, without further delay, let’s take a closer look at how even though renting may afford some flexibility and lower upfront costs, purchasing a home can provide many benefits that present this option as a wise, long-term investment.

The subject of equity?

One of the most compelling advantages of owning a home is that, over time, there is the potential to build equity. But what is equity – what does it mean exactly? Equity represents the difference between the current market value of a property and the remaining mortgage balance.

Through consistent mortgage payments and taking advantage of any property value appreciation, homeowners can steadily increase their equity position. Not only can this provide a valuable source of financial security for future years to come, but it may also establish a foundation for other investments, such as home improvements, saving for a child’s education, or even a second or third property investment at home or abroad.

Overall saving

In addition to building equity, owning a home can provide long-term cost savings. Although the initial costs of buying a property may be higher than renting, taking into account a deposit, and other expenses, homeownership can still be the more economical choice. Take fixed-rate mortgages, for example. This type of mortgage means that payments remain stable over time, unlike rent payments, which are likely to escalate annually.

Flexibility and stability

Another significant advantage of owning a home is the freedom it allows for changes and improvements to be made to the property. Unlike renters, who are generally restricted in their ability to alter their living space, homeowners have control over their property. They can make renovations, such as adding an extension, changing the flooring, or upgrading the kitchen, without seeking permission from a landlord. This degree of autonomy and control can be empowering and help homeowners establish a living space that truly reflects their personality and lifestyle.

Homeownership also provides stability and permanence, which can be invaluable for many people. Unlike renters, who may have to move frequently due to expiring leases or changing circumstances, such as landlords deciding to sell, homeowners can reside in their property for as long as they wish. This can be especially crucial for families who want to provide a stable environment for their children or individuals who want to put down roots in a community.

Final thoughts

Enlisting the assistance of a reputable mortgage and insurance broker, such as Choice Mortgages UK, can help you to easily navigate the home-buying process and provide valuable guidance throughout the journey. Their team of experts can assist you in evaluating your options and locating the right mortgage and insurance products to suit your particular circumstances.

This means that with their help, you can make informed decisions that provide long-term financial benefits to help you achieve your homeownership goals. Contact Choice Mortgages UK Limited or call 01780 480600 today for independent and trustworthy advice on your mortgage and insurance needs.

What to look for in a Mortgage Advisor

9th February 2023

Whether you’re a first-time buyer or a seasoned property investor, having a trustworthy and knowledgeable advisor is essential to obtaining a mortgage. With the right help, you can navigate the complex and ever-changing world of mortgages and find the best alternatives and rates to make the best-informed choice. Choosing the right professional should take into account crucial factors.

Here are essential qualities to look for when choosing a mortgage advisor:

Choosing a mortgage advisor – key qualities

Expertise and Experience

A good mortgage advisor should thoroughly understand the current mortgage market, including regulations, trends, and all recently available products. Look for an advisor who has been in the industry for several years and has a proven track record of helping clients secure the best mortgages for their needs.

Independence

Choosing an advisor who is not tied to any particular lender or financial institution is essential. An independent advisor will have access to a vast range of mortgage products and rates, giving you the best opportunity to find the right mortgage for your financial position without any restrictions or bias.

Personalisation

It’s a two-way street, so take your time and research to find an advisor who is invested in you. A good mortgage advisor should try to get to know you and understand your goals and needs. This level of personal service is vital in helping you to ask questions and feel comfortable with your decisions.

Communication

A good mortgage advisor should be easily relatable, and customer-focused. Look for an advisor who is responsive, approachable, and provides clear and concise information.

Completeness of Service

Having part of the information and being left to Google to find your way around what to do next is of no use. A good mortgage advisor should guide you through the entire mortgage process, from start to finish. Look for an advisor who will complete all the necessary paperwork, keep you updated on the progress of your application, and ensure that the process is smooth by foreseeing any potential challenges along the way.

Availability

When looking for a mortgage advisor, it is important to consider their availability. You want an advisor who can organise appointments that work with your schedule and is available to answer questions, provide support when you need it, and not leave you hanging.

Fee structure

Some mortgage advisors charge fees for their services, while others are compensated by the lenders they work with. Much like the services of a solicitor or an accountant, the professional services of a mortgage advisor need to be taken into account. Make sure you understand the fee structure of the advisor you are considering so that you know what to expect and plan for contingencies.

Reputation

Look for an advisor who has a good reputation in the industry and is well-regarded by their clients. Read reviews, check ratings, and ask for referrals to ensure you choose a trustworthy advisor.

In conclusion, when choosing a mortgage advisor, it is crucial to consider their expertise, independence, personalisation, communication, completeness of service, availability, fee structure, and reputation. By finding the right mortgage advisor for your needs, you can be confident that you are making an informed and intelligent decision about your mortgage.

At Choice Mortgages, benefit from personalised and efficient services with over 100 years of experience from our team of reliable advisers.

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