Certainly, mortgage rates have increased over the past year as the government tries to calm inflation by encouraging the Bank of England to raise the base rate. Mortgage rates have come down slightly since September and the disastrous mini-budget, which saw mortgage rates escalates. But they are still high – certainly in comparison with the same period last year.
And for some elderly people they are finding it impossible to re-mortgage due to their age and salary not being high enough to meet the criteria. Most people though, if they’ve had their property long enough, will have built up equity which the mortgage lender will take into account against the value of a loan.
Today the average two-year fixed deal mortgage rate in the UK, according to uSwitch, is 5.35 percent. For a five-year fixed rate, it’s 4.72 per cent. This is based on a Loan to Value calculation of 75 per cent (ie, you must have 25 per cent of the loan in equity or pay it as a deposit). If you can’t get a fixed rate then the average standard variable rate (SVR) is far higher, at 7.74 per cent.
If you do decide to re-mortgage with a different mortgage lender then they will want a valuation of your property. The bank, building society, private lender etc will usually arrange for a house surveyor to go out and carry out an assessment. He or she will check for any structural building faults or signs of dampness as these, in particular, will affect the price of the property. They’ll also want to double check room sizes and assess the condition of both the exterior and interior, including the décor.
The assessor will then look at other similar properties in the locale and check how much they are selling for. How quickly (or not) they are being sold will also be taken into account, as will the state of the property market in the UK in general. For instance, the sector is often referred to being either a ‘buyer’s market’ or a ‘seller’s market.’ This usually depends on the supply of housing stock available (it being a seller’s market when stock is low and more people are fighting over the same property).
If the survey finds that your property isn’t as worth as much as you originally stated to the mortgage lender, then you may find the amount of your mortgage offer is reduced. In this instance it might be possible to get a loan to cover the difference. Another alternative is to put down a bigger deposit, if possible.
Are you looking to re-mortgage or find that you would rather sell-up and downsize? If that’s the case then here at Stewardson Developments we are happy to come out to see your home to assess its value. We will then make you an offer for it after just one viewing.
You won’t have to pay any solicitor or marketing fees, and the sale will be hassle-free.