In this Guest Blog, Zoe from EQ Gateway answers some of the questions you may have about the state of Mortgages in the current economic climate.
A Helping Hand to Navigate the Mortgage Market
A few weeks ago, lenders fixed interest rates rose sharply. This was not due to the Bank of England base rate but because of the volatility in the swap rates market.
At the peak of volatility, lenders withdrew products from the market, and rates increased sharply. The media’s coverage of the changes in the market heightened the panic and may have worsened the situation.
Until recently, a 5-year fixed rate was the product of choice among clients, but variable rates are now coming back. Many clients are unfamiliar with Discounted Products and Tracker Products, but in parallel with some education, lenders should consider adding them to their portfolio.
Things have started to calm down, and we have new options
We are now seeing; returning fixed-rate products and regular rate reductions.
Variable rate options are also beginning to look very interesting after years of the ‘5-year fixed’ being the ‘product of choice.’
‘Discounted Products’ and ‘Tracker Products’ are an unknown to many clients but should now feature in product consideration.
The Importance of a Mortgage Broker
We keep abreast of the market and product changes, which are happening daily throughout the day.
A Mortgage Broker can search the whole market of lenders and products before making any recommendations. We have a strong understanding of lender criteria, so we will only apply to lenders that will work with the demographics of a case.
Every client has a unique situation. Only with a good understanding of the background and requirements can a broker identify the most competitive and suitable option.
So, it is not all doom & gloom.
It is a changing world; rates, unfortunately, were never likely to remain under 3% forever. In previous years, at their peak, they have been up at 15%.
The key is to attain informed current mortgage advice. At EQ Gateway we can advise on the best product to suit your affordability, lifestyle and future.
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