Your family is a treasure and deserves only the best. And since you are a responsible person, you probably want to buy a property where your children have all the necessary resources to become upstanding citizens. A house in your name could give you the security you need for the long term, it could bring you various tax benefits, it could signal to the world that you are a responsible adult who knows what they want out of life, and it could be a means of mitigating the disruptive effects of inflation.

But the price of housing available in the United Kingdom is rising year on year, and because of this, your prospects of buying a house with cash are diminishing by the day. Realistically, your next home will be purchased with a mortgage. And for this reason, calling a professional mortgage advisor in Hull could be crucial for maintaining the financial well-being of your loved ones. An experienced broker specialising in mortgage advice could work with you to find the most effective financial tools for your situation and could manage your file, which will free up your schedule.

A professional mortgage counsellor will have access to exclusive deals and browse the databases of the largest lenders in the UK for exclusive discounts, which could prove advantageous for your family. But you probably have questions, and we're here to answer them. Want to know more about the UK government's proposed aid schemes? Need help deciding what to choose between a fixed-rate or flexible-rate mortgage? Looking for more details on the UK's economic outlook over the next few years? If so, we will cover your concerns in the following paragraphs and give you the information your family needs.

How Can a Mortgage Expert Help with the Right-to-Buy Scheme?

The right-to-buy programme is one of the most advantageous financial aid schemes offered by the UK government and can be a tool to purchase your rented council home at a discount of up to 70% of its market value. Are you renting a council property and don't have another house in your name? Then, after three years of tenancy, you could buy your dwelling at a discount of 35% of its market value.

The maximum discount you can benefit from lies at £96,000 in England, an exception being London, where the maximum accepted amount is £127,900 in 2023 for both houses and apartments. After five years of tenancy, the discount that will apply to your property will increase by 1% per annum to a maximum value of 70% of its market appraisal. But this only applies to houses. For flats, the discount after three years will be 50%, and after five years, each year spent as a public council tenant will bring an additional 2% discount on the purchase price, up to the same maximum level of 70%.

If you wish to sell the property within the first ten years after purchase, you must first offer it to your old landlord or another social landlord operating in your regional area. And if they do not respond within eight weeks to your offer, you are free to sell your house to anyone. A professional mortgage advisor could help you complete your RTB1 application, negotiate the right mortgage policy for your family on your behalf, and deal with the paperwork needed to complete your written requests. And if you want to find out more, you can visit Hullmoneyman.com.

Why Choose Fixed-Rate Mortgages?

When considering taking out a long-term home loan, you will have a choice between a flexible interest rate and a fixed one. The most popular option, preferred by most British citizens, is a fixed-rate mortgage, as this allows your interest rates to remain constant for a predetermined period, usually no more than ten years. This could keep your payments stable regardless of fluctuations in the British economy.

Fixed-rate mortgages offer protection against changes in the national economy. But the initial rate when you take out the loan will be higher than in the case of variable-rate mortgages. And in some cases, you may be hit with additional fees if you wish to repay your mortgage earlier than agreed. However, given the state of the national economy in recent years and the outlook for economic growth over the next decade, fixed-rate mortgages are the preferred option for the majority of UK citizens, and as a mortgage counsellor will tell you, they are likely to remain so for the foreseeable future.

Why Choose Variable-Rate Mortgages?

Variable rate mortgages, on the other hand, are most often tied to the interest rate set up by the Central Bank of England, which now, in 2023, stands at 5%. Variable interest rate mortgages are more flexible and can be a solution if you want to repay your loan faster than previously agreed. Variable-rate loans also require a lower initial interest rate than fixed-rate mortgages and can therefore be a solution for families who want to rely on the long-term stability of the UK economy.

But variable-rate mortgages are more financially risky, as your monthly rates may be influenced by the economic variations experienced in the domestic economy. As the national interest rates set by the Bank of England are at their 13th increase in a row, a variable-rate mortgage could be a risky solution, especially considering the economic uncertainties expected for 2024 and beyond. A professional mortgage advisor in Hull could advise you on the best type of mortgage for your situation, and answer your questions, however complex they may be. 

The Best Choice for Your Loved Ones

Using the services of a mortgage counsellor based in Hull could be an idea synonymous with your family's economic prosperity. A mortgage may represent the most important investment you will ever make, and choosing one that represents a good deal for your family may be essential to maintaining harmony in your household. A difference of a few pounds on your monthly payments could lead to significant savings, which you could reinvest in the things that matter to you.

A Hull and East Yorkshire mortgage advisor could negotiate on your behalf, find exclusive deals from lenders utilising the national markets, advise you on the most suitable schemes for your situation, or discover elements that may be used against you in a loan application. Are you self-employed? In this case, a mortgage counsellor could be your number-one ally. Have you dealt with a CCJ in your name? If so, working with a broker would be imperative for your application not to be rejected. Ultimately, collaborating with a professional mortgage broker can only benefit you. The risks for you are nonexistent, as their commission is usually paid directly by your mortgage lenders.

Publication: 03/08/2023 08:07