Recent years have seen an extraordinary period of competitive and low interest rate mortgage deals but, even before the Bank of England’s (BoE) rate-setting Monetary Policy Committee began increasing interest rates last December, there were signs that the era of ultra-low mortgage rates was at an end.
For many people, rate rises will mean an increase in their outgoings at a time when incomes are al-ready stretched. It is therefore important to consider how a rise in interest rates might affect your ability to meet your mortgage payments.
How quickly can you sell a property?
Selling your home is often considered one of life’s most stressful events. There is no denying that it can be a frustratingly lengthy process. If you are keen to sell your property, you will understandably want to know how long it could take for your property sale to go through. It’s important to keep in mind that the length of time it takes to sell your home depends on many different factors, not least of which is how ‘hot’ or ‘cold’ the property market might be in the area where you are selling your property. Turn to page 40 to see the average time it typically takes to sell a property in both a ‘hot’ market and a ‘cold’ market.
Bank of England (BoE) Financial Policy Committee has confirmed that it will withdraw its affordability test Recommendation
Following its latest review of the mortgage market, the Bank of England (BoE) Financial Policy Committee has confirmed that it will withdraw its affordability test Recommendation. This will come into effect from 1 August 2022. Introduced in 2014, the test specifies a stress interest rate for lenders when assessing prospective borrowers’ ability to repay a mortgage. The stress test means borrowers have had to prove they could still afford their mortgage repayments if their mortgage rate were to increase to 3% above their lender’s standard variable rate. Turn to page 19 to read the full article.
Are you looking to boost your home’s saleability this summer?
If you’re selling your home during the summer months, outside space will undoubtedly be an attraction for many buyers. It’s also no secret that first impressions count. So if you want to get the best possible price for your property, then make sure that the outside is looking its best. One of the most important aspects of curb appeal is your garden. When a prospective buyer is visiting tens of different properties, you need to make your property stand out. On page 42 we provide tips to make your outside space sell your home.
People with fixed rate mortgages are likely to be affected once they reach the end of their current deal. If your current deal is coming to an end, if appropriate, consider switching to make sure you’re on the best rate.
What are the most effective strategies landlords need to consider?
Whether you are thinking about making your first buy-to-let investment, or you are an experienced portfolio landlord, there is lot that you need to consider when you let out a property. As with any investment, on page 86 we look at why it’s important to understand how to maximise your returns and the rental yield is one of the key metrics that landlords should focus on.
We hope you enjoy our selection of articles in this summer issue. A complete list appears on pages 03 to 05.
We always welcome your feedback and if you would like to discuss how we could help you with your mortgage requirements, please contact us.
