If you’re worried about how you’re going to afford your mortgage, there are things you can do now to make your repayments more affordable. Take a look at our top 5 tips:

1 Swap your variable rate for a better rate

If your mortgage has now gone on to a variable rate, you may be worried about being able to afford the higher payments. There are things you can do though – and did you know you can swap on to a better rate without producing any other paperwork?

2 Made overpayments? You could have a payment holiday

If you’ve made overpayments, your lender may allow you to have a payment holiday or maybe reduce down the mortgage payments to make them more affordable.

3 Look into extending your mortgage term

You can speak to the bank about your current mortgage term being extended, lowering the monthly mortgage payments. Your lender can go to a 30, 35 or 40 year term depending on the age of the applicant.

4 Shop around to get a better deal

If your mortgage product is due to be renewed you might get a better deal by looking around at different lenders, so that could be another option to save money!

5 See if you can remortgage

If you’ve lived in your house for a period of time, you may be able to get a better deal because the value of your property may have gone up.

 

Always speak to your lender

Remember, rule number 1: try not to worry and always speak to your existing lender or broker about your options. Other deals may be available to you that could be cheaper than what you’re currently paying.  And if you opt for a product transfer, it may surprise you to know that this will probably be done for you free of charge – this is because it’s just a swap of an interest rate, not a new mortgage application.

Give yourself peace of mind by taking control of your mortgage. At Mortgage Light we’re always here to help. Our advice is free so why not give us a call on  01908 597655 to talk through your options?

The cost of living crisis may make buying, selling or remortgaging your home seem difficult for the foreseeable future – that’s where a mortgage adviser comes in. But how exactly? Let us explain. It’s fair to say that 2022 has been a pretty rocky year in many ways. Whilst we more or less waved goodbye to the pandemic, we were still experiencing the fallout from its impact on the world, alongside the effects of the Ukraine war and the cost of living crisis.

The economy and the mortgage market in particular have been far from stable in 2022. We can expect this to continue into 2023 as interest rates are expected to stay high and house prices begin to drop. 

With the mortgage market still being a major talking point and a lot of change still on the horizon, it’s never been more important to work with a mortgage broker and adviser when getting a mortgage or making any changes to your mortgage next year. 

The mortgage market is unsettled

At the moment the mortgage market is incredibly unsettled. Over the last few months, lenders have been continuously changing rates as they struggle to deal with the business demands that they are attracting by sourcing at the top of the table. Lenders have also been causing real delays in reviewing documents, leaving buyers with low confidence and deciding to pull out of deals.

However, we do expect to see the mortgage market slow in 2023 due to people’s strained financial situations. People who would have otherwise been looking to get onto the property ladder will choose to observe or maybe postpone this step until the cost of living crisis eases. 

We advise anyone in this position to chat with a mortgage adviser ahead of time to work out when the right time to buy could be, and what they can be doing in the meantime to put themselves in the best possible position.

Navigating a lender’s criteria

Arguably the most valuable thing that a mortgage broker and adviser can help with in 2023 is navigating a lender’s criteria and pinpointing the best lenders to approach for the best chance of success with a mortgage application. Our vast knowledge and experience in the market mean that we are able to match you with a lender who is likely to accept your mortgage application, meaning you don’t risk having a rejection on your record.

Let’s say for instance that you are always living in your overdraft. This can make your bank statements a little ‘messy’ which is likely to be a red flag for many lenders – so much so that they may choose not to lend to you. However, we know that some lenders out there don’t look at bank statements so these are the lenders that we would approach in these particular circumstances.

Get the best mortgage rate

In 2023 when finances will be tight for many, securing a good mortgage rate will have never been more important. If you are remortgaging next year, using a mortgage broker and adviser gives you the best possible chance of getting the best rate available to you.

At Mortgage Light, we work with lenders that will allow us to secure rates ahead of time. So for instance, if your remortgage is due in the next 6-9 months, we may secure the best mortgage rate we can find today but then our remortgage team will keep an eye on the rates to see if anything better crops up. If it does, then we will adjust and swap you to the better rate. 

Managing payment shock

When people were originally sold their mortgages, lenders had already factored in whether they could still be able to afford their product if interest rates went up. However, moving into 2023 where interest rates have gone up and so has the cost of living, we’re finding that the extra buffer that lenders had factored into affordability actually may have depleted. Additionally, clients may have taken out additional financial commitments since getting their mortgage, such as a new car or sofa.

As a result, people are getting what is known as payment shock when they come to remortgaging. They are not expecting their payments to double and begin panicking about how they will cover this cost. In these instances, a mortgage broker and adviser is there to help assist and navigate these extra costs within the household. We don’t want our clients to ever feel helpless and like they are out of options. No matter what the situation, there may be routes we can go down and different mortgage products that we can explore to make the numbers work.

As advisers, we are striving to be ready for whatever happens next in the mortgage market so that we can help our clients make sensible decisions ahead of time. Without this foresight and the help of a qualified expert, someone in a position to get a mortgage or make changes to their mortgage could get themselves into a tricky situation – and now is not the time to be taking risks or making mistakes. We would always advise turning to a mortgage broker or adviser if you are planning on getting a mortgage or making changes to your mortgage in 2023.

Planning on making a mortgage change or taking out a mortgage in 2023? Get in touch with Mortgage Light today and let us guide you through the process. 

If you’re thinking of applying for a mortgage, there may be lots of questions you need answering. That’s why we’ve put together some golden nuggets of information which we hope you’ll find useful. You can also search our blogs here on our website or why not give us a call on 01908 597 655 to make an appointment with one of our friendly, experienced mortgage advisers?

Can I get a mortgage on maternity leave?

The answer is yes, you can. We work with lenders that are willing to give you a mortgage even if you’re on maternity leave.

Do I need 3 years’ books if I’m self-employed?

Not necessarily; we have lenders that will accept 1 year’s books. Did you also know that CIS workers are treated as self-employed by lenders?

What salary multiplier do lenders use?

Some of our lenders are now lending up to 5.5 times annual salaries – and in some cases, even 7 times. Give us a call on 01908 597 655 to see what you could borrow on a mortgage.

Can I get shared ownership with no deposit?

Yes – we have access to a lender that will allow you buy a shared ownership with 0% deposit. To find out more about shared ownership please read our blog.

Can I use a loan for my deposit?

You may be surprised to know that yes, you can with Santander. They’ll allow you to use money from a loan as your deposit, as long as it’s affordable for you and the loan itself is not from them.

Can I get a mortgage if I’m starting a new job?

Nationwide will loan against a forthcoming contract, as long as you are starting your new job within three months.

Will a lender look at my UK Visa status?

We have lenders that will loan no matter what your UK Visa status is. This is subject to the lender’s criteria so please give one of our friendly team a call if you’d like to know more.

If you have any mortgage-related questions, remember we’re just a phone call away. Just call 01908 597655 or leave a reply below and one of our friendly team members will be in touch.