It was recently announced that TSB has increased interest rates on selected three-year fixed rate mortgages for first-time buyers, home movers and remortgage borrowers.
The increases are across a range of LTV (loan to value) brackets, and the majority of the increases are by 0.10% - with TSB stating that the adjustments are in line with recent changes in the market.
Last month, the Association of Mortgage Intermediaries predicted that mortgage rates would begin to rise in early 2017, as economic uncertainty puts pressure on long-term interest rates. The Association found that lenders are conforming to usual volume patterns and will likely compete for business in the final weeks of the year, but warns that this may drop off in Q1 2017.
But what does this really mean for home buyers? And why is now the best time to visit a mortgage advisor?
Firstly, it means you're protected, as your mortgage advisor has a duty of care to you. When they recommend a suitable mortgage, they must be able to justify why the particular mortgage they have chosen is right for you. That's what we do. Simple. We're also on YOUR side, not the lender’s side, and we'll give you access to far more products than if you went direct.
Mortgage criteria is ever-changing, particularly over the last few years, which is why it's so important to stay in the loop – and to have a mortgage advisor on your side who understands it all. Bear in mind that they deal with lenders on a day-to-day basis, so they’ll know what the application process is like for each one.
Finally, mortgages are a lot more difficult than they first appear and there's an awful lot to think about when choosing the right one. It's not as simple as just opting for the cheapest fixed or tracker rate mortgage you can find. Knowing what rate, term, lender, features and insurance to get are complex matters. A mortgage broker takes your whole circumstances into account, and it's that thorough, professional look at your finances that makes advice well worth paying for.
At Poole Townsend, we understand that each individual’s personal circumstances are different, so it’s best to come and talk to our mortgage advisers and sales and lettings experts to see what might be best for you own personal situation. If you’re unsure about the different options, please don’t hesitate to speak to a member of our friendly team - get in touch with us here.