In a year that’s seen seven Bank of England base rate rises, homeowners and people wanting to get on the property ladder are feeling the heat. B Mortgage Services have seen a growing number of options for later-life lending, with retirement interest-only mortgages and increased flexibility with equity release lifetime mortgages.
SoGlos[1] recently carried out the following interview with B Mortgage Services adviser Mark Walker, where he offered his expertise on getting a clearer picture of the current financial landscape.
What does your role encompass at B Mortgage Services?
My role is to help clients with all aspects of mortgage advice, as well as ensuring our clients are able to remain in their home regardless of how their financial situation may change.
We are here to help and support our clients through every stage of the mortgage process.
What are the biggest issues surrounding mortgages at the moment?
This year to date we have seen seven Bank of England base rate rises, which has increased the cost of lending to the borrower.
Since the financial crash in 2008, we have experienced exceptionally low-interest rates. However, if you were to look at the average cost of lending over the previous 20 years, the current mortgage products on offer are still comparably low.
What services do you provide that can help?
We offer whole-of-market mortgage advice for all aspects of residential and buy-to-let lending; we also offer advice on all areas of mortgage protection, including life cover, critical illness cover, and income protection.
In your experience, how can people get the best deal?
If your existing mortgage product is coming to an end, you can secure a new deal up to six months in advance through a re-mortgage.
By securing a fixed-rate mortgage offer now, it will protect you from any potential interest rate rises that may occur over this period, but should interest rates fall, you will not experience any benefit.
It’s also important to consider how you appear to the lender. Make sure you’re registered on the electoral roll at your current address and that your credit commitments are paid on time.
It can be difficult to compare mortgage products without advice, as it’s not always the lowest interest rate that is the most cost-effective solution.
You also need to consider any associated fees and costs, including lenders’ fees, valuation fees and legal costs.
To get the best deal, I would recommend you seek independent advice.
Which types of mortgages are generally speaking best for different life stages?
It would really depend on the individuals’ circumstances, rather than their age.
A young couple in employment with a fixed income and no alternate means to repay the mortgage may benefit from a fixed-rate repayment mortgage, so they can budget effectively and ensure the mortgage balance will be cleared at the end of the term as long as they maintain their payments.
A middle-aged couple could be looking to capital raise for a second home, investment property or home improvements.
An older person within the last 10 years of their mortgage may be looking at how they can clear the remaining mortgage balance, or could be considering raising additional funds to help family members onto the property ladder.
Over the last five years, we have certainly seen a growing number of options for later-life lending, with retirement interest-only mortgages and increased flexibility with equity-release lifetime mortgages.
Are there any common misconceptions around mortgages that you’d like to set straight?
I think now, more than ever, it’s important to seek independent mortgage advice.
I’ve read a lot of headlines, particularly over the past couple of weeks, with confusing details and misinformation. If you’re unsure just ask.
Is there anything else about mortgages you’d like to highlight?
I think it’s important to point out that in the current climate lenders do still want to lend and there are mortgage products available.
We understand that there are a variety of options for clients who are wishing to mortgage or remortgage their property. However, by using a B Mortgages broker you will benefit from our expert whole of market advice that could save you a great deal of time and reduce your stress levels.
