So many question's so little time!

November 14, 2016 by Sam @ Pinnacle Mortgage Centre

Q & A with Pinnacle Mortgage Centre

This week has brought to light a number of questions with our clients, and we thought it wise to share some of these with you in case they may be relevant to you.

Will the US presidential change affect my mortgage?

It is understandable that a change of that significance will bring about an element of a fear of the unknown, however the UK economy is not solely reliant on the US. It remains one of our trade partners globally, and there is no solid basis to feel that this will affect anything in the short term.  The UK housing market is largely separate from this process anyway, and, as a result, there is no indication that mortgage rates will be affected in any way because of the US presidential change.

Will the invoking of Article 50 cause a problem in the housing market?

As with the immediate worry after the “Brexit” polls there will inevitably be the same rounds of negativity surrounding the UK economy, with the understandably questions raised of the UK Housing Market.  It is, of course, impossible to offer any true indication as to what could happen but theoretically not much should change.  Fear breads fear, and it is normally the homeowner themselves that causes a shift either way due to simple supply and demand. If people are fearful, they won’t move. This will lessen demand, and, as a result, this would cause an effect on house prices stalling/decreasing. We saw this on a very small scale immediately after Brexit, but thankfully it rebounded very quickly. Remember though, it is not a simple process, and the UK will take some years to exit the EU zone, so Article 50 will just be the start.  We could be having this discussion for some time to come!!

Rates remain low, but for how much longer?

A good question, but something that we have no clear direction on.  The territory we are in is very much unprecedented, and I gave up some time ago using the phrase “they can’t get lower”.  So, I will say this.  The facts show the base rate at 0.25%.  All signs point to a more stable economy, which is what the Bank of England set out to do.  Inflation is on course to squeeze a little higher in 2017, and it is usually with an increase in inflation that cost of borrowing will rise just to ease the spending. Although only small margins now, it COULD mean that we start to see incremental rises in mortgage interest rates. Although, at this very moment, we are static. This is a good thing for all the homemovers, remortgage clients, and first time buyers.

My mortgage application was declined due to poor credit, can you help?

Good question, and usually the answer is YES.  The rise of credit agencies, and the obsession with gaining a credit score, has caused a bit of a stir over recent years in the mortgage world.  Different lenders will use different agencies, and what shows on one, may not show on another.  Therefore, the key is not that you have bad credit.  It depends on what that credit issue is.  Is it a missed payment?  Have you had a default or CCJ in the past?  If so, how long ago?  In many cases clients try to hide their past, and this is then picked up on application. At his point there is really no excuse, and the lender will often decline as they feel cheated. Therefore, by being upfront, transparent, and honest, we can help.  There is a huge market of “adverse” lenders who are more sympathetic, and we can find the right home for your mortgage.

This article is by Sam @ Pinnacle Mortgage Centre.
Should you have any further questions then please feel free to call 01702 831920 or e-mail info@pinnaclemortgagecentre.co.uk