Navigating the shifting tides of mortgage rates

When it comes to securing a mortgage, there’s a constant ebb and flow in interest rates that can make your head spin. Mortgage rates are like the tide – they rise and fall (although it has been more rise than fall of late), influenced by various economic factors. If you’re in the market for a residential mortgage, you’ll want to stay ahead of these fluctuations.

To help you chart a steady course through these choppy waters, we’ve gathered some valuable insights from Dan Lukic, Head of Residential Mortgages at Principle Finance.

1. Act early, stay informed

Our first piece of advice is to act early. When it comes to mortgages, timing is everything. Mortgage rates can change rapidly, and the best deals often have a limited shelf life. By starting your mortgage journey early, you give yourself more time to assess your options, gather the necessary documentation, and make an informed decision.

Dan Lukic advises: “Don’t wait until the last minute to secure your mortgage. Keep a close eye on the market and be ready to pounce when you find a rate that suits your needs. Procrastination could cost you in the long run.”

2. Lock in with flexibility

One strategy Principle Finance suggests is to lock in your mortgage rate with the option to change closer to the time if a better deal arises. Some lenders offer rate locks that allow you to secure a rate for a specific period, typically ranging from 1 to 6 months. During this time, you can continue shopping for a better deal. If you find one, you can switch to the new rate without penalty.

Dan says: “This strategy provides a level of security while preserving your flexibility. It’s like reserving a table at a restaurant but still having the freedom to dine elsewhere if you discover a better place.”

3. Consult a ‘whole-of-market’ adviser

One of the most critical steps in securing the best mortgage rate is to seek advice from a whole-of-market adviser. These professionals have access to a complete range of lenders and mortgage products, giving you a comprehensive view of the market.

Dan adds: “A whole-of-market adviser can analyse your financial situation, goals, and preferences to find the mortgage that suits you best. They can help you navigate the ever-changing landscape of mortgage rates, ensuring you get a deal tailored to your needs.”

In summary, navigating the ever-changing mortgage rates requires proactive planning, flexibility, and expert guidance. To ensure you secure the best mortgage deal, take action early, consider locking in with flexibility, and consult a whole-of-market adviser.

Dan concludes: “At Principle Finance, we’re committed to helping you navigate the complex world of mortgage rates. Our team of experts are here to guide you every step of the way, ensuring you make the right decision for your financial future.”

So, whether you’re a first-time buyer or looking to remortgage, don’t let the tides of mortgage rates throw you around. Act now, explore your options, and consult with Principle Finance to secure the best mortgage deal tailored to your needs.

Ready to set sail towards your dream home? Contact Principle Finance today on 0330 107 1558 or [email protected] and let us help you navigate your way through the sea of options available to you.