Mortgage Rates

Rock Bottom Mortgage Rates: What Do They Actually Mean?

It isn’t very often we hear the phrase ‘rock bottom’ in a positive context, but what about rock bottom mortgage rates? Firstly, do they really exist? In a nut shell, yes. The Telegraph recently published a breakdown of the Top Fixed-Rate loans available accompanied by an article discussing the implications of rock bottom mortgages, after rates plummeted this month to a historic new low. I really do recommend taking a look at the article, for anyone attempting to determine whether to (re)mortgage or not to (re)mortgage; it provides a clear and concise explanation for anyone already somewhat mortgage-savvy.

Equally informative is the article this is Money have published recently, discussing the potential implications any rise in mortgage rates could have and how to ‘future-proof’ your mortgage against those potential (and eventual) rises. If, though, like myself, you find yourself overwhelmed by ‘banker’s banter’ and likely to ‘put off’ that decision as to whether now is the time to buy or remortgage, seeking the expertise of a mortgage broker is probably the best advice I can give.

Are We All Seeking Expert Advice?

Most of us wouldn’t buy a house without having a survey carried out first, and yet many of us enter into mortgage agreements without seeking expert advice. Why do we do this? Often, and ironically, ignorance leads us to make ignorant decisions; many people do not know that we can access expert mortgage advice without incurring costs. Some may even be aware of ‘no-fee services’ offered by some Mortgage brokers, but instead of being encouraged by ‘no-fee’ advice, become suspicious.

Of course, it is prudent to be cautious, but it is misguided to assume ‘no-fee’ is a term only used by those attempting to scam or otherwise ‘catch us out’. David Sharples, of Search Mortgage Solutions, is eager to dispel this misconception. In his article, How Can Mortgage Brokers Offer A No-Fee Service, Mr Sharples explains that mortgage brokers ‘certainly aren’t working for free [, but that those] working on a no-fee basis receive a referral fee from lenders, generally based upon a percentage of the overall loan arranged’. Hence, a ‘borrower’ is able to access expert and tailored advice to ensure they receive the best possible deal on their mortgage.

The Realities of the Recession

We are presently living in a climate fraught with discussions and the realities of ‘recession’, ‘austerity measures’ and ‘cuts’, but as they say, every cloud has a silver lining; mortgage rates have plummeted as a direct result of our struggling economy. While this could spell disaster for those who have watched the value of their savings fall as a consequence, for the thousands of families looking to buy, move, begin property portfolios or remortgage, now could be the perfect time.

Hence, I feel it is important, now more than ever, to make people aware that expert advice is available and advisable when making the decision to buy property or remortgage an existing property because ‘rock bottom mortgage rates’ will not be around forever.