There is a possibility of a mortgage war in the UK, triggered by improving economic news. A mortgage war is when lenders compete for borrowers by offering lower interest rates and other incentives. Sounds like a war I'd love to be in!
Here are the factors currently at play that is causing increased competition between lenders (and let's jubilate as they drop their rates):
- The Bank of England's recent decision to raise interest rates, which is expected to put upward pressure on mortgage rates.
- The government's plan to extend the mortgage guarantee scheme, which could make it easier for borrowers to get a mortgage.
- The improving economic outlook, which could lead to more people feeling confident about taking on debt.
If, sadly, not when, a mortgage war does occur, it could have a number of implications for South London homeowners.
- Homeowners could benefit from lower interest rates, which could make their monthly payments more affordable.
- Homeowners could also have more options when it comes to choosing a mortgage, as lenders compete for their business. Hopefully it will reduce red tape that a borrower needs to go through to secure a home loan.
- However, a mortgage war could also lead to increased competition for properties, which could push up house prices. Cheaper borrowing means increased affordability...
Overall, the impact of a mortgage war on South London homeowners is uncertain. However, it is something that homeowners should be aware of, as it could have a significant impact on their finances.
Here are some additional things to consider:
If you are a South London homeowner, it is important to stay up-to-date on the latest mortgage news. You can do this by reading industry publications, following mortgage experts on social media, and talking to your mortgage lender. However I'm sure you have better things to do, so keep an eye out when your mortgage deal is coming to an end. Any time before that the information will be largely irrelevant and things are set to change anyway.
If you are considering remortgaging, it is important to shop around and compare interest rates from different lenders. You can use a mortgage comparison website to do this or consult a broker to do the leg work for you.
It is also important to make sure that you can afford the monthly payments on your new mortgage. You should use a mortgage affordability calculator to do this.
If you need my thoughts on your buy to let property or even the value of your own home be sure to drop me an email to see if I can help.