Ten mortgage questions for Trinity's Luisa Ciccarelli
Mortgage lenders have been busy making rate changes over the last few weeks. This means brokers have to stay on top of the market to ensure their clients get the most suitable and cost-effective rates.
In our latest blog, we ask Trinity Financial's broker, Luisa Ciccarelli, about her views on the property market and her mortgage tips for buyers.
1) How are you finding the mortgage market at the moment?
The first few months of the year were really busy, especially as the lenders were lowering their rates. There was a lot of positivity. At the moment, lenders have been pushing up costs, so some buyers are holding off until rates come down.
I am still busy running affordability checks and helping buyers work out how much they can borrow. Buyers are still getting offers accepted, and people are remortgaging; it's just not as busy as at the start of the year.
2) Are you speaking to many first-time buyers or people looking to remortgage?
Yes, there will always be people out there looking to buy property and lots of people need to remortgage. I help a lot of first-time buyers purchase flats and houses.
3) Do you find people can borrow the amount they need?
Yes, most of the people I speak to can borrow what they need. There are various products with different lenders designed to help and boost affordability.
I have been using Nationwide’s Helping Hand product for some of my first-time buyers because they can borrow up to 5.5 times their salary. Some lenders are more generous than others, especially if you take a five-year fix. Accord, Halifax, and Santander have some of the most generous affordability calculations.
4) Is it a good idea for first-time buyers to build up a credit rating?
It does make sense to get some form of credit, like a credit card, to boost your credit rating and, ideally, clear the balance each month. Although, this depends on whether you trust yourself to manage the debt.
5) Do you advise borrowers to get a decision in principle before they go property hunting?
Yes, because it gives them a good idea of how much they can borrow and a purchase price to aim for. It is also a requirement when buyers offer on a property.
It is worth remembering a decision in principle just gives an indication of what you can borrow. A full mortgage application will generally need to be submitted to secure a rate.
6) Are your clients taking two or five-year fixes?
My clients are taking a mixture. Many are taking two-year deals because they expect rates to come down and want to take advantage of that. However, many clients are still taking five-year fixes for the security. Some borrowers have to take five-year fixes to borrow enough money.
7) Where are most of your clients based?
I have clients based throughout the UK although most of them are buying in London and the south east. Some of them are buying more unusal properties. I recently had a client buying a house with 15 acres near Birmingham and I helped someone else get funding to convert three flats back into a house near Bath.
8) How long does it take a get a mortgage offer agreed?
This does depend on lenders time scales. It is normally between two weeks and a month although some lenders are much quicker.
9) What advice would you give to buyers?
Get a good broker. Even if we secure you a good deal, I check the market every few weeks to see if there is a cheaper deal. This is really important in these uncertain times.
Don’t let the rates put you off. If you find a nice property, the mortgage is affordable, and you think it’s a good investment, then go for it. For homeowners due to remortgage, secure a new deal six months before it finishes. It is important to have security as we have seen rates change quickly before.
10) How do you think the property and mortgage markets will go for the rest of this year?
I expect the Bank of England to lower the base rate in the summer, which could bring down rates. Lower inflation figures should also help. I am positive about the market particularly as the estate agents I deal with are busy, and people still want to get on the property ladder or move.
Call Luisa Ciccarelli on 020 7016 6152 to secure a mortgage or send her an email.
The information contained within was correct at the time of publication but is subject to change.
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