Today’s Mortgage Rates Provide Unique Opportunities
While interest rates remain low, there are golden opportunities to own the house you have always dreamed of. But they won’t be available forever.
It doesn’t seem so long ago that borrowers were snapping up five or six percent mortgage deals and congratulating themselves on scooping the bargain of the century. Today, deals with an initial rate of less than 1.5 percent are available from countless lenders, and they are willing to lend higher amounts than ever.
If you’ve had that dream house in mind as a long term goal, it could be a case of now or never. With the Bank of England base rate set to steadily climb over the months and years ahead, the affordability of 800,000 pound mortgages is never going to be better. Here are some pointers to making the dream a reality.
Be clear about your aims
As the Cheshire Cat said in Alice in Wonderland, if you don’t much care where you want to get to, it doesn’t much matter which way you go. The thing about dreams is that they are usually vague and tenuous. The first step to making them a reality is to be clear as to what you are looking for and what is really important to you. This might be spectacular views, plenty of land, a living room in which you can fit a grand piano or a bedroom with a luxury en suite and a balcony. Brainstorm the question with your family so that everyone is clear about what that dream house is going to look like. That’s the first step towards finding it.
Get the finances in order
There is nothing more stressful than finding the perfect house and then chasing around the mortgage lenders trying to get the money together. It’s frustrating for you and alarming for the seller. Before you do anything else, sit down with a mortgage advisor, go through all your finances in detail and walk out of the meeting with a clear picture of what mortgage is available, where it is available from and what it is going to cost you.
Be imaginative as to location
You can buy a castle in Scotland for the price of an apartment in Mayfair. Extreme examples, perhaps, but it goes to prove that the more flexible you can be as to location, the more house you can get for your money. In this age of remote working, many of us have the luxury of being able to base ourselves anywhere, without needing to worry about the daily commute. That is well and good, but also exercise a little pragmatism. If the nearest shop and school are 45 minutes away by car, it can soon get tiring – and while being in the middle of nowhere looks idyllic in the height of summer, try to imagine what it will be like in a howling gale and 18 inches of snow.
Don’t sweat the small stuff
Don’t rule out a property just because it is in need of redecoration or modernisation. Homes like this can represent great value for money, and you have the added bonus that over time, you can make the place truly your own.