Martin Lewis tip for older Britons trying to get a mortgage
Martin Lewis has told Britons in their 40s looking to get a mortgage it’s “perfectly possible” to safe for an individual to safe a deal.
The monetary journalist appeared on ITV’s This Morning and answered a query from Alice, who collectively along with her companion, each of their 40s, is in search of a mortgage.
Alice mentioned: “We’re not a position to buy yet as house prices are extortionate. We are currently saving for a deposit and my family will also contribute towards it. Will our ages hinder our chances of getting a mortgage?”
Mr Lewis warned their ages can be a hindrance however this doesn’t imply they are going to be fully unable to get a mortgage.
He defined: “The key is what age you will be when you finish the mortgage. If you could get a 25-year term in your 40s, you’re still likely to be working at the time you finish paying off your mortgage, it shouldn’t be a problem.
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“If you’re looking for a 35-year term then you’ll be 75, then what the mortgage will do is look at your prospective pension, to see whether that would be enough to make the mortgage payments. They will do that affordability and assessment.”
The monetary skilled went on to inform Alice it was “perfectly possible” she could secure a mortgage, as it’s a lot simpler for older Britons to get one going into their pension years than it was.
Mr Lewis added: “I would strongly suggest you find yourself a good mortgage broker who could go through this with you, talk through your options, and you may as well do that early.
“A good mortgage broker won’t charge you until you actually get a mortgage with them so you can go talk to them now, start to build a relationship with someone that when you’re ready to get your mortgage, they should be able to help.”
Mortgage repayments for variable fee offers have vastly elevated over the previous 12 months, as lenders have elevated their rates of interest as the bottom fee set by the Bank of England has regularly gone up.
The base fee is at present at 4.5 p.c with some market specialists predicting it’s going to improve once more.
Victor Trokoudes, founder and CEO of Plum, informed Express.co.uk individuals trying to get a mortgage deal want to contemplate their circumstances “carefully” earlier than they make any choices.
He mentioned: “Ultimately it boils down to how much risk you are comfortable taking. Is it better for you to fix at a price you know you can afford, even if that means paying more if interest rates drop?
“Or do you have enough flex in your finances to weather any interest rate turbulence, and cope even if interest rate decreases do not come?
“If you’re looking to remortgage, the earlier you start your research the better to help ensure you can get the best deal for your circumstances.
“You can typically lock in a new mortgage deal three to six months ahead of your mortgage deal expiring. That means if rates do rise, you’ve got a more competitive deal ready to go.”
Stuart Cheetham, CEO of MPowered Mortgages, warned month-to-month repayments might go up as a lot as 25 to 30 p.c.
He mentioned: “Around 15 percent of mortgage holders are on some form of variable rate at around the 5.5 percent to six percent mark.
“This could be notably more than what they were paying before and may mean some struggle with their payments or have to change their lifestyles significantly to be able to make the payments.
“We strongly urge borrowers to seek independent mortgage advice so they can find the best deal that meets their needs.”
He mentioned mortgage debtors are unlikely to see any fee reductions this 12 months with rates of interest extra prone to go down within the first half of 2024.
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