Feeling Positive About Mortgages in 2019

Caz Blake-Symes • January 8, 2019

Bristol, Bath & Exeter Mortgages Online Put Your Mortgage Needs First

Despite lots of uncertainty in the market, mostly due to Brexit, all the team here at Bristol, Bath & Exeter Mortgages Online, are taking a positive approach to getting the best mortgage deals for our clients in 2019.

Whatever is happening in the world of finance and politics, we never forget that we are dealing with individuals’ needs and requirements. So, whether you need to remortgage at the end of a fixed term deal, change from an interest-only mortgage to a repayment, require a better Buy to Let deal or if you are a First time Buyer hoping to get onto the property ladder, we are here to help.

Below are some of the predictions from “industry experts” that we appreciate understand the mortgage market. However, to us the most important factor will always be YOU.

This information was compiled by Emma Lunn, from Mortgage Strategy, who has canvassed the opinion of a number of industry experts regarding what will happen to interest rates in 2019.

“Inevitably, the coming 12 months are trickier to predict than other years as we’re yet to find out what kind of deal, if any, the UK will leave the EU with. This has led to a wider spread of views than might be expected.

Investec Private Bank business development manager Peter Izard thinks we’ll see two 0.25 per cent interest rate rises in the coming year, with the base rate at 1.25 per cent by the end of 2019.

Coreco brand director Andrew Montlake says Brexit means any kind of prediction is fraught with danger. “On the face of it, the gentle pace of interest rate rises should continue, with one or two rises of 0.25 per cent easing rates up over the next 12 months.

However, other industry pundits disagree that we’ll see a rate rise or two. SPF Private Clients chief executive Mark Harris thinks interest rates will end 2019 at 1 per cent while John Charcol senior technical manager Ray Boulger doesn’t think we’ll see a raise at all – his guess is that bank rate will remain at 0.75 per cent for the whole of 2019.

Regardless of what is happening, we know that what’s important to you is for you to get the best mortgage deal that suits your individual needs, or your requirements as a couple or family.

Remember as an Independent Mortgage Broker, we are regulated to offer you the best advice.

For expert advice and more information or to book your FREE consultation please visit one of our websites, call or email.

Bristol Mortgages Online www.bristolmortgagesonline.com Tel 0117 325 1511

Bath Mortgages Online www.bathmortgagesonline.com Tel 01225 584 888

Exeter Mortgages Online www.exetermortgagesonline.com Tel 01392 690 888

Email info@swmortgages.com

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Boost to buying power from changes to affordability tests

By Caz Blake-Symes • May 1, 2025
Adapted from Zoopla’s April 2025 Housing report I mage: The analysis uses average house prices from the house price index and for first-time buyers to assess mortgage payments at different mortgage rates applied to a 30- year mortgage, at different loan-to-values. One emerging trend that we expect to positively support market activity in the coming months is a relaxation in how lenders assess the affordability of new mortgages. While buyers focus on the mortgage rate they will pay, lenders also check whether the borrower can afford a 'stressed mortgage rate' at a higher level than the borrower will pay. ​ While the average 5-year fixed rate mortgage is around 4.5% today, many lenders are currently 'stress testing' affordability at 8-9%. This makes it harder to secure a mortgage without a large deposit. If average mortgage stress rates were to return to pre-2022 levels of 6.5% to 7%, this would deliver a 15-20% boost to buying power. ​ An average first-time buyer with mortgage repayments of £1,020pcm at a 4.5% mortgage rate would typically have to prove they could afford monthly repayments of £1,550pcm at an 8.5% stress rate. If the stress testing is relaxed to 6.5%, repayments would fall to £1,275pcm, boosting buying power. It's a similar pattern for the average homeowner, while the actual impact will vary by lender and type of borrower. ​ This change would consequently supporting demand and sales volumes, helping to clear the stock of homes for sale, rather than boosting house prices. Other existing rules and regulations that remain in place will continue to impact the availability of mortgage finance.  Comment from Phil Clark “This is potentially very exciting news and will give borrowers a greater choice of products if these rules are relaxed. Regardless of whether you are a First-time Buyer, Looking to move, remortgage or invest in property, there are a huge range of competitive mortgage deals on the market. I will be delighted to discuss your specific requirements and offer you the most suitable deal!” Please call Phil on 0117 3251511 or email info@swmortgages.com For more information about the Mortgage and Protection products we offer, please visit www.bristolmortgagesonline.com Your home/property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.

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By Caz Blake-Symes • March 11, 2025
Here at Bristol, Bath and Exeter Mortgages Online, we understand that getting your first mortgage, or even a remortgage, especially if your circumstances have changed, may look like an impossible task, but we are here to help. We hold your hand from your initial enquiry through to the completion of your purchase. It's not that tricky and there are ways you can improve your odds and boost your chances of a successful mortgage application.
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Some mortgage rates cut below 4% as competition picks up

By Caz Blake-Symes • February 19, 2025
Adapted from BBC Article by Kevin Peachey, Cost of living correspondent 13 February 2025 Two major lenders launched mortgage deals on Thursday with interest rates of less than 4%, as competition picks up in the sector. The prospect of further cuts in the base rate by the Bank of England has given mortgage providers confidence to reduce their own rates. But the attention-grabbing sub-4% deals by Santander and Barclays will not be available to all borrowers, particularly first-time buyers, and may come with a hefty fee. The return of such deals might prompt other lenders to follow suit after a period of tepid competition. Nationwide, the UK's biggest building society, has said it will reduce some of its rates on Friday. Mortgage deals with interest rates below 4% have not been seen since November. Across the whole market the average rate on a two-year fixed deal is 5.48%. The typical rate on five-year deals is 5.29%, according to latest figures from Moneyfacts. Time to decide Some tracker and variable rate mortgages move fairly closely in line with the Bank's base rate, which was cut to 4.5% a week ago. However, more than eight in 10 mortgage customers have fixed-rate deals. The interest rate on this kind of mortgage does not change until the deal expires, usually after two or five years, and a new one is chosen to replace it. About 800,000 fixed-rate mortgages, currently with an interest rate of 3% or below, are expected to expire every year, on average, until the end of 2027. That means a higher monthly bill for many homeowners on their next renewal, but there are signs that the rate they could pay is on its way down.  Bank of England governor Andrew Bailey said the interest-rate setting committee expected to be able to cut rates further "but we will have to judge meeting by meeting, how far and how fast". This will affect savers who are seeing lower returns, but could bring better news for borrowers. The Bank's next rates decision is on 20 March. Message from Phil Clark “Regardless of whether you are a First-time Buyer, Looking to move, remortgage or invest in property, there are a huge range of competitive mortgage deals on the market. I will be delighted to discuss your specific requirements and offer you the most suitable deal!” Please call Phil on 0117 3251511 or email info@swmortgages.com For more information about Mortgage and Protection please visit www.bristolmortgagesonline.com
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