Welcome to April’s Mortgage Monthly column.
This month we look at why speed can sometimes be of the essence when it comes to mortgage decisions.
Since the UK exited Covid, the mortgage market has seen its fair share of challenges both internally through regulation changes as well as external challenges.
When challenges such as the current geopolitical issues in the Middle East cause uncertainty and rapid change for our clients it highlights the need for good, speedy advice – something our advisers pride themselves on delivering.
The war in Iran started at the end of February and had an almost immediate effect on mortgages with many lenders changing or withdrawing deals at short notice.
We have seen lenders emailing advisers informing them products will be pulled the same day, giving clients only hours to secure a deal.
This led to frantic attempts to get hold of clients who have not committed to a new rate to replace their current mortgage deal when it ends.
By March 23, around 1,500 individual mortgage products had been pulled from the market, according to industry publication Mortgage Strategy.
While this is not quite on the scale of the 900 rates pulled in a day in 2022 after the Liz Truss mini-Budget, it does show the profound impact that events over 4,000 miles away have had on UK mortgages.
Deals which do remain don’t stay around for long – in February, mortgage products stayed available for an average of 33 days; by March this had dropped to 14 days.
The initial reaction to the war seems to have settled with fewer rates being withdrawn from the market and some early signs of minor falls in average mortgage rates.
However, long-term stability remains in doubt, particularly in a situation which has been unpredictable from its inception and has already seen extensive swings in sentiment and market reaction.
In times like these, talking to experienced mortgage advisers who can give quick, concise advice looking at the whole of the market can really help with decision-making.
Reaching out or making time to speak to your adviser when they get in touch in the lead-up to a mortgage rate coming to an end cannot be underestimated.
Being prepared to make quick decisions to lock in a rate can ensure that if rates rise you have taken advantage of what is best for you at the time.
Locking in a rate during a rising rate environment through an adviser will come with other advantages.
Lenders offer a four to six-month lead-in period to secure a product.
As a result, for example, if rates start to drop – as they did in the first week of April – you can switch to a cheaper one, should one become available. An adviser can help with this research and scour the market for good deals.
After 2022’s volatile period where rates spiked, we saved one of our clients more than £11,000 over the term of their mortgage by switching the initial rate they secured to a cheaper rate before their current deal expired.
Of course, this was a number of years ago and every individual’s circumstances are different so this would not necessarily be the case now.
In a fast-paced, unpredictable world, being prepared to make quick, evidence-based decisions when it comes to securing a suitable mortgage rate can help save you money should rates increase.
Using an adviser can ensure that you end up with the best rate available to match your circumstances at that time.
If you are concerned about a current deal that is soon coming to an end, reach out to your adviser so they can give you the correct timescales to secure a new rate.
And for help on buying a home – whether you’re a first-time buyer or someone looking to move house – get in touch with one of our mortgage advisers today.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
At times, it seemed like this winter was going to last forever, but Spring is here at last.
As well as warmer weather and lighter nights, this time of year often brings a desire to move house.
Spring is traditionally the season where the housing market ramps up and, notwithstanding the impact of recent geopolitical upheavals, this year looks set to be no exception.
For many of us, buying a home is the biggest financial commitment we will make in our lives.
It is a major life event, but too often the temptation is to treat a house purchase as a stand-alone occasion rather than part of an overall financial life plan.
The other danger which we face is that we get emotionally involved in the process.
We really, REALLY want that house.
It’s got everything we could want and we’re already picturing ourselves living there.
When you get wrapped up in a house buying journey, it’s all too easy to disregard everything else in the pursuit of your dream home.
This is where working with financial adviser is worth its weight in gold.
Your financial adviser will sit down with you and put together a comprehensive financial plan:
A properly thought through and well-executed plan will help you to address the three crucial aspects of house buying which most people forget:
You don’t want to pay so much for your house that you’re left with very little to live on in retirement.
In an age of 30-year and even 35-year mortgages when the average age of a first-time buyer in the UK is 34, you could well end up still paying for your home when you’re past State pension age.
Factoring this into your calculations when weighing up the purchase of a home is something which many people neglect to do.
Planning to repay your mortgage before retirement is important.
Financial advisers can help with this, by supporting your plan from day one and throughout the term of the mortgage, potentially saving £1,000s in interest and supporting plans for saving.
The purchase of a home is the biggest debt you are likely to take on in your life.
Advisers have a duty to ensure you can cope with that debt and that your family won’t have to face taking on that debt should the worst happen.
Part of your plan should be to protect your home and your family income.
If you get ill, sick pay is a lot less generous than most people think it is.
With the global economy far from predictable, unemployment is a fact of life these days.
How will you keep up your mortgage payments if you are made redundant?
Your financial adviser will help you to tackle all three of these issues – and plenty more besides.
For example, by working with fellow professionals such as mortgage advisers (which we also have at Fairstone), they can help you get the best deal on the loan for your property.
And a few years down the line, they can do the same again to ensure your remortgage keeps you on a sound financial footing.
They can also review your protection policies as life events such as the birth of a child happen, to make sure these products are always appropriate for you and your families’ needs.
Importantly, a financial adviser will keep the other parts of your plan on track, rather than just give you a good mortgage deal.
So they will help you with things like saving for your children or grandchildren, paying for school or university fees, investing for your retirement and planning your estate.
These financial events very often overlap with your home buying journey so someone who knows how it all fits together – and can show you how with the use of tools like cashflow modelling – could prove invaluable.
And they are always there as a voice of calm reassurance and wise counsel when you’re unsure if you’re doing the right thing with your finances.
To borrow the title of a well-known TV programme, most people think buying a home is all about location, location, location.
In reality, it’s all about plan, plan, plan.
Buying a house isn’t just a transaction, it’s a key part of your financial life.
Wouldn’t it be much more of a home, sweet home if you knew it was part of your comprehensive financial plan?
Fairstone is home to a wide range of financial advisers, mortgage advisers and financial planning experts, ready to help you out on everything from property purchases to planning your retirement.
Get in touch with a Fairstone adviser to find out more.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Disclaimer: This article is for informational purposes only and does not constitute financial, tax, or legal advice. Tax treatment depends on individual circumstances and may change. The value of investments can go down as well as up and you may not get back the full amount you invested. Past performance is also not a reliable indicator of future performance. Always seek professional advice before making financial decisions.
Welcome to the Mortgage Monthly column for March.
This month we’re looking at the changing state of the UK housing market.
February is projected to achieve the highest monthly volume of new listings in the past decade, indicating increased seller confidence and a strong motivation to move home.
Additionally, average earnings have outpaced house prices over the last three years.
Lower mortgage rates – notwithstanding the effect of recent events in the Middle East – and relaxed affordability assessments have further contributed to improved housing affordability, supporting higher sales volumes.
A significant development has been the adjustment in how mortgage lenders evaluate affordability.
In particular, a change in how a borrower’s capacity to manage potential future increases in mortgage rates has altered calculations.
Lenders assess whether someone can afford a home using what is known as a mortgage stress rate – if interest rates reach this particular level, can a borrower still afford to make their repayments?
A year ago, lenders assessed whether someone could afford a home using a mortgage stress rate of 8.5%.
Now, lenders are assessing affordability using a 6.5% mortgage stress rate.
As a result of this fall in the mortgage stress rate, 40% of homes are now less expensive to purchase with a mortgage than to rent, according to the Zoopla House Price Index.
This compares with just 25% when assessed against the previous, higher stress rate.
These changes represent the most notable improvement in first-time buyer affordability since 2022, when mortgage rates began rising.
Sustained market activity has been supported by declining base rates and heightened competition among mortgage lenders.
As a result, at the start of this year, the average mortgage rate for new loans reached its lowest level in four years.
In addition, both 2-year and 5-year fixed-rate deals dropped below 4% for the first time since 2022.
Further reductions in the base rate were anticipated this year before the recent rise in Middle East tensions.
This has complicated the picture for mortgage rates, making anticipating the future challenging.
Nevertheless, buyers can still find some favourable rates available, particularly those able to make larger deposits.
A professional mortgage adviser can not only help you to find the best deal, they will also ensure that a mortgage fits in with your financial circumstances and helps you towards your overall financial goals.
They can also guide you through every step of the process so that you know what to expect and when.
For help on buying a home – whether you’re a first time buyer or someone looking to move house – get in touch with one of our mortgage advisers today.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Welcome to a new monthly series looking at the latest developments in the mortgage market.
This month we’re looking at remortgaging and why 2026 could be a bumper year.
In 2026, a substantial wave of two-year and five-year fixed rate mortgages are set to mature, resulting in a particularly active year for refinancing.
Borrowers with two-year fixed deals reaching their end will likely see the advantage of reduced monthly payments, as the best mortgage interest rate has decreased from 4.99% in 2024 to 3.75% today.
As well as potentially lower rates, those looking to remortgage are also likely to have a broader selection of options.
More mortgage lenders allow rate switches within four months of product end dates and remortgage offers are valid for longer.
This combination means that you have more time to secure a product, ride out some of the short-term volatility and can still switch to another product if a cheaper deal comes along before your remortgage completes.
This enhanced flexibility could help to cut the cost of what remains most people’s biggest financial burden.
A professional mortgage adviser can not only help you to find the best deal, they will also ensure that any remortgage is right for your financial circumstances and goals.
They can also guide you through every step of the process so that you know what to expect and when.
Remortgaging is a great opportunity to look at your overall financial situation and to plan for your changing needs over the coming years.
A professional adviser can help you take stock of where you are, where you want to be – and how you can get there.
For more information about remortgaging or to start your remortgaging journey, get in touch with one of our mortgage advisers today.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
The ‘bank of mum and dad’ is becoming a well-established term for parents subsidising their adult offspring.
But are you ready for the ‘bank of mum and dad mortgage’?
Helping your children take their first steps on the property ladder isn’t new.
But as research shows that in 2024 173,500 first time buyers had £9.6bn worth of help from their parents, what are the implications of being your child’s mortgage provider?
Here we take a look at how parents and grandparents can help their descendants buy a home – and the implications for all parties involved.
The rising cost of property, higher mortgage rates and a more stringent mortgage market have combined to make it increasingly challenging for young people to buy their first home.
With average house prices at almost £300,000 and minimum deposit requirements at between 5% and 10%, first time buyers need to scrape together at least £15,000 before they can even think of getting on the property ladder.
Many lenders ask for deposits of between 15% and 20% of a property’s value. This leaves buyers looking at the thick end of up to £60,000 as a deposit.
And all this is before lenders look at ongoing affordability criteria…
Faced with this kind of financial conundrum, it’s unsurprising that young people are turning to their parents for help.
So if you want to help your child or your grandchild out with their first property, what do you need to watch out for?
A key decision you will have to make as ‘the bank of mum and dad’ is on what terms you will give your assistance.
There are three main ways of helping out financially:
Gifting can be a good way to help out family as well as cut down on potential inheritance tax liabilities after you’re no longer around.
We deal with the issue in-depth in another guide but basically you could gift a substantial amount to your child (or grandchild) and, providing you live for a further seven years, no inheritance tax would be paid on that amount.
If you were to die before that seven years is up then inheritance tax could be charged on any amount over the £325,000 allowance (known as the nil rate band) on a sliding scale as follows:
| Time between gift and death | IHT rate on gift |
| 0-3 years | 40% |
| 3-4 years | 32% |
| 4-5 years | 24% |
| 5-6 years | 16% |
| 6-7 years | 8% |
| 7+ years | 0% |
Instead of a one-off boost to your family member’s property purchase, you could help them with regular payments.
Known as ‘gifts from income’, these must be amounts that do not affect your standard of living and that are made on a regular basis e.g. every month or every year.
Such gifts from income will not count towards your estate for inheritance tax calculations, providing that you keep a record of them via a form available from HMRC – the IHT 403 form.
If you’d prefer to lending your child or grandchild money for a house purchase, an appropriate form of loan agreement is a must.
Clear evidence of the loan is important to ensure that the amount you are lending is protected from third party claims.
Any loan you make can be secured against the property by way of a second charge (the mortgage lender’s charge will take priority).
Normally, family loans are documented as interest free and repayable on demand, since this keeps the status of the loan simple from a tax perspective.
However, if you take this approach, you should be aware that the debt due to you counts as an asset of your estate for inheritance tax purposes. As a result, if you die before the loan is repaid, family members may end up effectively paying the debt twice.
You may wish to consider waiving the debt further down the line, although any such waiver has to be done by way of a deed.
Certain lenders in the market have the ability to factor in this loan agreement into the mortgage proposition but it should be noted that any repayments in the loan, will be factored into their affordability for a mortgage.
The final option is investing in a property with your family member.
This could give you an element of control in terms of where your money goes and gives you a prospect of some return on your investment.
However, you should be aware of the potential for tax downsides, including a stamp duty surcharge that will apply to the purchase price if you already own a property.
You will also have to pay capital gains tax on any rise in the value of your share in the property if the property is sold in your lifetime.
An interesting proposition to overcome these tax issues is through a joint borrower – sole proprietor option, where parents (or relatives) can enter into a mortgage agreement but without being an owner of the property. This situation is particularly useful where there are shortfalls in affordability. This proposition is being offered increasingly by lenders across the market.
An alternative option for parents to help their offspring with property purchases is trust planning.
This is where parents set up and gift into a discretionary trust for the potential benefit of their adult children and future generations.
Although the parents must be excluded from receiving any benefit from the trust assets themselves, they can act as the trustees to decide when and how best to apply the trust funds for the benefit of their children.
Such a structure can help with the gifting process outlined above and can have added security benefits.
However, establishing and maintaining a trust requires specialist financial and legal advice so you will need to consult experts before moving ahead.
No-one wants to think about splitting up when they buy their first house. However, if you gift money to your child for a property then that money can be subject to claims by third parties.
This means that if your child moves in with a partner or marries and that relationship breaks down, their partner could make a claim for a share of the money you’ve given your child.
One way to avoid this is to have a declaration of trust created through a conveyancer. This will in essence “ring-fence” the deposit so that on sale, this will be returned to the person providing the deposit in the event of relationship breakdown.
While it’s not the most romantic thing to do, it is a practical measure to protect financial interests.
While most mortgage lenders are okay with parents financially supporting their offspring with property purchases, there are certain areas where a gifted deposit is not allowed by a lender.
This is often the case with high Loan to Value products where the lender insists as a trade-off for the high loan to value offering, that the deposit must come from the applicant’s own funds.
These products only make up a small proportion of the market, however.
Helping children or grandchildren with the financial side of owning a property is becoming more common and, in some cases, almost essential.
However, while your intentions may be laudable, it pays dividends to think carefully and take expert advice before turning those intentions into action.
Speak to us to today to find out how we can help make your child’s property dream a reality – without giving you a headache.
Disclaimer: This article is for informational purposes only and does not constitute financial, tax, or legal advice. Tax treatment depends on individual circumstances and may change. Always seek professional advice before making financial decisions.
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When it comes to buying a home, one of the biggest financial commitments you will make in your life, there are various options for financing your purchase. One such option is an offset mortgage.
An offset mortgage is a type of mortgage where the borrower’s savings and current accounts are linked to the mortgage. The balance of these accounts is then offset against the mortgage debt, reducing the amount of interest paid. For example, if you had a mortgage of £200,000 and savings of £50,000, you would only pay interest on £150,000.
The obvious advantage of an offset mortgage is that you can minimise the interest you pay.
As long as you have a decent amount in the savings account, you’ll be paying interest on a smaller figure.
Going for an offset mortgage means you may be able to put down a smaller deposit.
So, if you don’t want to tie up all your savings in property, you could still access them — though any money you take out of the account will no longer offset the loan amount.
There’s also a tax benefit. You won’t pay tax on the savings (because they don’t earn interest), which means they won’t be counted towards your Personal Savings Allowance. Although they won’t earn interest, they will be helping you save interest elsewhere.
Offset mortgages aren’t the guaranteed interest saver you may expect them to be. They do carry higher rates, which might mean you don’t end up saving much through the offsetting element.
By putting the cash into the property on the other hand, you will have a lower loan-to-value ratio, and this can help you access the better deals.
As mentioned, you won’t earn interest on the savings in your account, so it’s important that the amount of interest you’re saving outweighs the amount you could earn in a different account.
You’ll also need the linked savings account to be with the same provider, which can mean you need to switch accounts if you remortgage with a different lender.
There are fewer offset mortgages around, so your available deals may be limited. You may also have to pay high fees, which could counteract potential savings.
There are several reasons why an offset mortgage could be an option worth considering:
By offsetting your savings against your mortgage, you could potentially save thousands of pounds in interest payments over the life of your mortgage. This is because interest is only charged on the outstanding balance of your mortgage, so the more savings you have, the less interest you will pay.
Most offset mortgages offer flexibility in terms of making overpayments or underpayments. This means you can pay more than your required monthly mortgage payment when you have extra cash, or pay less when times are tough. This can be a useful feature for those with fluctuating incomes or who are self-employed.
Unlike with regular savings accounts, you don’t pay tax on the interest earned on your savings when they are offset against your mortgage. This is because the interest is not considered income, but rather a reduction in the interest charged on your mortgage.
There are a few main products to suit different borrowers. These are:
These mortgages are designed for those who want to help family members get on the property ladder.
For example, if it’s a parent, they would have a savings account linked to their child’s mortgage account, which could be used to bring down the mortgage interest.
Setting up this kind of arrangement can help first-time buyers get accepted by lenders.
Landlords can use buy-to-let offset mortgages to minimise their monthly payments and increase their profit margins.
Offset mortgages are generally designed for people with big savings that they won’t need to dip into for a number of years.
They work well for these situations:
Whether or not you should take one out will depend on how much flexibility you want for your cash and the amount the arrangement could save (or lose) for you.
That’s why it’s always important to do the sums on the interest.
Putting down a bigger amount as a deposit will help you access better deals. But keeping the cash in a linked account will mean you pay interest on a smaller amount.
You need to calculate the interest in both scenarios to decide which is most cost-effective.
Generally speaking, you would need at least 20 to 25 per cent of the mortgage amount to remain in savings for an offset mortgage to be worthwhile.
But don’t just take our word for it — do the sums or speak to a mortgage broker.
An offset mortgage is a bit like overpaying. However, when you overpay, you will have to factor in the cost of early repayment fees (if you pay over the limit) and accept that you no longer have access to the cash.
With an offset mortgage, however, there is no limit as to how much you can keep in your linked account to offset the interest. But the downside is that you will usually pay higher interest and fees to have the mortgage.
There is a lot to consider when it comes to choosing the right mortgage for you.
As well as calculating all the sums, a mortgage adviser can help you decide whether it is more practical for you to keep access to your cash with an offset mortgage.
While it’s possible to set up an offset mortgage on your own, it can be a complicated process, especially if you’re not familiar with the mortgage market. That’s why it’s often a good idea to speak to a mortgage adviser who can help you find the right offset mortgage and guide you through the application process.
If you’ve decided an offset mortgage is right for you, here’s how to get started:
Arrange an appointment with a regulated mortgage adviser. As the number one rated wealth management firm on Trustpilot, you can rest assured you are in safe hands with Fairstone. Book a meeting with a Fairstone adviser today.
When you meet with your mortgage adviser, be prepared to discuss your needs and goals. This will help your adviser to understand your financial situation and recommend the right offset mortgage for you. You should also provide information on your income, expenses, and any other financial commitments you have.
Your mortgage adviser can help you compare different offset mortgage products and their features, such as interest rates, fees, and flexibility. They will also be able to explain the benefits and drawbacks of each product and how they suit your specific needs.
Once you have chosen an offset mortgage product, your mortgage adviser will help you with the application process. This will involve providing your personal and financial information, such as proof of income and identification.
Once your mortgage has been approved, your mortgage adviser will help you link your savings and current accounts to your mortgage. They will also help you transfer the funds you want to offset against your mortgage into your linked accounts.
Finally, your mortgage adviser will help you manage your linked accounts and make sure you are getting the maximum benefit from offsetting. They can advise you on how to maintain the benefit of offsetting and how to avoid dipping into your savings.
If you’re considering an offset mortgage, get in touch with an adviser today to guide you through the process and ensure you get the best deal for your specific needs.
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The base rate, set by the Bank of England’s Monetary Policy Committee, is the rate they charge other banks and lenders when they borrow money. It is the main driver of rates on mortgages and savings products in the UK and any changes are likely to impact the cost of mortgages and the return on savings. Generally, a higher base rate means banks and building societies are likely to increase the cost of mortgages, whilst savers can expect a slightly higher rate of interest on their savings. However, this isn’t always the case.
Fixed-rate mortgages currently account for four out of five mortgages in the UK. If you have this type of mortgage, the change will not affect your payments immediately, but could do when the fixed period ends.
For those on a tracker mortgage, which directly follows the Bank of England base rate, your rate is likely to increase by 0.50% immediately and payments will go up from next month.
For those on a discounted rate, or standard variable rate mortgage, your lender may decide to pass all, some, or none of the increase in rates on to you. They will write to you in advance of any increase in payments.
For UK borrowers on a fixed rate, this change won’t immediately impact monthly payments. For those approaching the end of their existing mortgage deal, looking to purchase a property with a new mortgage, or already on a standard variable rate, it is likely that rates will increase. However, this rate rise has been well forecasted, and many lenders already factored the increase into new mortgage deals. Some lenders however will withdraw mortgage rates and launch new products with higher rates.
Despite the recent increases, the base rate still remains low compared to historic levels.
Clients with existing mortgage offers will not see rates increase for as long as the mortgage offer remains valid.
Getting in touch with a mortgage adviser can help you understand how the increase in base rate might impact you, explore your options for remortgaging or switching rates, and help you access support if you think you may encounter difficulties in paying your mortgage.
For more information about the base rate changes, and what they could mean for you, get in touch with an adviser today.
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As the market prepares for the Bank of England’s decision on raising the base rate, or not, now is the time to seek advice on your mortgage.
At this time, when there is uncertainty about future economic conditions, it’s important to understand what your options are. In the past two weeks, we have seen lenders withdrawing products from the market with little to no notice as they look to price in potential base rate changes, coupled with SWAP rates increasing again, now is the time to speak to an adviser.
If you’re coming to the end of your mortgage product in the next 6 months, now is the time to start looking into fixing a new deal in advance. If interest rises during this period, then you will have already secured your rate and won’t need to worry about any impending further rate hikes.
Most mortgage offers are valid for six months, so it is important to make sure you are aware of the time frame when considering switching to a new deal. With a 6 month lead in period to a new mortgage product starting, having an adviser continuously review the market will give you an advantage, this will give you the ability to secure a lower rate should there be any reductions in the lead up to your current product ending. In addition, it’s important to take into account any early repayment charges (ERC) when switching to a new deal as this could have an effect on your budget.
If you don’t do anything then your mortgage will go onto your lender’s Standard Variable Rate (SVR). This means your mortgage payments could go up or down, but in the current economic climate they are more likely to increase. Don’t miss out on the opportunity to save money and discuss with us how securing a mortgage now may be beneficial for your particular situation.
We’re here to help find the mortgage that’s right for you. To discuss your requirements, contact a Fairstone adviser today.
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YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
When it comes to buying a home, one of the biggest financial commitments you will make in your life, there are various options for financing your purchase. One such option is an offset mortgage.
An offset mortgage is a type of mortgage where the borrower’s savings and current accounts are linked to the mortgage. The balance of these accounts is then offset against the mortgage debt, reducing the amount of interest paid. For example, if you had a mortgage of £200,000 and savings of £50,000, you would only pay interest on £150,000.
There are several reasons why an offset mortgage could be an option worth considering:
By offsetting your savings against your mortgage, you could potentially save thousands of pounds in interest payments over the life of your mortgage. This is because interest is only charged on the outstanding balance of your mortgage, so the more savings you have, the less interest you will pay.
Most offset mortgages offer flexibility in terms of making overpayments or underpayments. This means you can pay more than your required monthly mortgage payment when you have extra cash, or pay less when times are tough. This can be a useful feature for those with fluctuating incomes or who are self-employed.
Unlike with regular savings accounts, you don’t pay tax on the interest earned on your savings when they are offset against your mortgage. This is because the interest is not considered income, but rather a reduction in the interest charged on your mortgage.
While it’s possible to set up an offset mortgage on your own, it can be a complicated process, especially if you’re not familiar with the mortgage market. That’s why it’s often a good idea to speak to a mortgage adviser who can help you find the right offset mortgage and guide you through the application process.
If you’ve decided an offset mortgage is right for you, here’s how to get started:
Arrange an appointment with a regulated mortgage adviser. As the number one rated wealth management firm on Trustpilot, you can rest assured you are in safe hands with Fairstone. Book a meeting with a Fairstone adviser today.
When you meet with your mortgage adviser, be prepared to discuss your needs and goals. This will help your adviser to understand your financial situation and recommend the right offset mortgage for you. You should also provide information on your income, expenses, and any other financial commitments you have.
Your mortgage adviser can help you compare different offset mortgage products and their features, such as interest rates, fees, and flexibility. They will also be able to explain the benefits and drawbacks of each product and how they suit your specific needs.
Once you have chosen an offset mortgage product, your mortgage adviser will help you with the application process. This will involve providing your personal and financial information, such as proof of income and identification.
Once your mortgage has been approved, your mortgage adviser will help you link your savings and current accounts to your mortgage. They will also help you transfer the funds you want to offset against your mortgage into your linked accounts.
Finally, your mortgage adviser will help you manage your linked accounts and make sure you are getting the maximum benefit from offsetting. They can advise you on how to maintain the benefit of offsetting and how to avoid dipping into your savings.
If you’re considering an offset mortgage, get in touch with an adviser today to guide you through the process and ensure you get the best deal for your specific needs.
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YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Overpaying on your mortgage now could be the key to happiness in later years.
In Fairstone’s latest client survey, respondents were asked: “What financial tip/piece of advice would you give your younger self?”, interestingly the results show that mortgage overpayments was one of the most common themes.
A mortgage is a significant financial commitment, and often the largest debt you’ll ever take on. But did you know that by making overpayments on your mortgage, you could potentially save thousands in interest, pay off your mortgage sooner, and reduce financial stress?
One of the most significant benefits of overpaying on your mortgage is that you’ll pay it off more quickly. This means you’ll be debt-free sooner, and you’ll have more money to put towards other things.
The interest on your mortgage is the cost of borrowing money from the lender. When you overpay on your mortgage, you reduce the principal amount of the loan, which means you’ll pay less interest over time. This can result in significant savings, especially if you make regular overpayments.
Equity is the difference between the value of your home and the amount you owe on your mortgage. By overpaying on your mortgage, you’ll build equity in your home more quickly, which can be valuable if you want to sell your property in the future.
Having a mortgage can be stressful, especially if you’re struggling to keep up with the repayments. By overpaying on your mortgage, you’ll reduce the amount of debt you have, which can help to alleviate financial stress.
If you’re nearing retirement age, overpaying on your mortgage can be a great way to become debt-free before you retire. This means you’ll have more disposable income during your retirement years and less financial stress.
By overpaying on your mortgage, you’ll have more flexibility if your financial circumstances change. For example, if you need to move to a new home, you may be able to afford a larger deposit or qualify for a larger mortgage because you’ve built up equity in your current property.
If you have the means to make overpayments, it’s definitely worth considering. However, before you do, it’s always a good idea to check with a mortgage adviser to ensure that there are no penalties or fees associated with making extra payments.
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YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
