Buying and remortgaging during the cost of living crisis

17/08/2022

We’re all feeling the pinch with the current cost of living crisis. There are very real implications for the property and mortgage markets, too, leaving homeowners and hopeful first-time buyers in a muddle.

A storm of converging factors over the last couple of years means that the UK is currently facing a profound economic crisis with many individuals and families experiencing a serious fall in living standards. As such, many of us are faced with the need to seriously assess our financial plans accordingly. So, if you’re a homeowner looking to remortgage, or a first-time buyer pinning your hopes on homeownership, you may be feeling confused as to how best to act.

Got your heart set on purchasing your first home?

Being a first-time buyer is stressful enough, but looking to clamber your way onto the property ladder during the current economic crisis is a whole new level of challenge and uncertainty.

You may ultimately be wondering if you should even take the plunge during the current crisis. This is totally understandable, and it’s only natural that first-time buyers could be getting cold feet and thinking about holding off on their purchase.

However, we would advise that it may be worth moving ahead with your plans.

First things first, whilst experts predict that the trend of rising house prices may soon slow, you could realistically be waiting an eternity for them to actually start falling. After all, the current trend of inflation is not set to halt anytime soon. Plus, a good deal of lenders are currently offering deals with smaller deposits to accommodate for the spike in prices.

You could wait around, but who knows what the situation could be this time next year?

Ultimately, if you’re in a position to buy, it could be smart to do so before interest rates rise again, which they are almost certainly set to do.

Or perhaps your fixed-rate is coming to an end?

If you’re looking to remortgage, the time to act is most certainly now. No question about it.

With the market currently pricing in upcoming interest rate rises, the best deals are increasingly being pulled by lenders.
We advise getting ahead of the game and locking in a cheap rate now with a new deal that will kick in once your current fixed-rate finishes.

How can a financial adviser help?

We live in unprecedented times. As such, many individuals feel incredibly overwhelmed about managing their finances.

Taking big steps with your financial planning is particularly difficult. The current climate, which is incredibly volatile, makes it extremely tough to know whether or not you are making the right choice.

Purchasing your first home or remortgaging your current home are both big decisions. An experienced financial adviser can assess your unique circumstances and provide tailored advice accordingly. Your adviser will be equipped with a solid whole-of-market perspective and a consistently up-to-date understanding of the financial climate, which is always changing.

With the right advice, you’ll be equipped with everything you need to confidently make the best choice for you and your family.

Feeling a little lost with your finances? We can help to create a clearer picture of your options. Simply get in touch today.