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As we’re now in the final half of 2023, we wanted to share our thoughts on the mortgage and protection market. We have been very busy over the past few months and the Summer hasn’t seen a slowdown. It's never been more important to obtain qualified mortgage advice to guarantee you're receiving the best advice.
In recent weeks, despite rising interest rates, lenders have been reducing rates slightly. Some lenders are allowing you to extend the term of your mortgage to 75 years of age, in an attempt to reduce monthly mortgage repayments. It's proving to be a popular option as the FCA report that the number of people who will be paying their mortgage into their 70’s has risen fourfold since 2018.
It's always helpful to talk through your mortgage options and we're here to listen and advise you based on your circumstances.
Early Advice When Remortgaging
Unlike years gone by, we're approaching mortgage renewals earlier than ever before. When you have 6 months or less left on your fixed rate mortgage deal we're reaching out to help explore your options.
This process allows you to lock in the best rate and if the rates then fall, we'll re-analyse your options and present alternatives, if they exist. It also means that if rates don't get better (or interest rates rise further) you'll have more time to prepare for the change in financial repayments.
We do this for everyone we help, so if you have friends or family that need assistance over the next 6 months and want to monitor which mortgage is best for their circumstances before they commit, please don't hesitate to let us know.
Thank you,
Pat, Damien, Patrick & Ryan |
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Considering choosing an extended mortgage term? |
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A standard mortgage used to run for 25 years but there is a growing trend for mortgages terms to be up to 40 years, as first-time buyers and movers opt for lower monthly payments.
A dramatic increase
According to UK Finance, the last two years have seen a dramatic increase in 40-year mortgages. In February 2023, 18% of all first-time buyers opted for a mortgage term of 35 years or more, compared to 8% in February 2022. According to Moneyfacts, 67% of all mortgage products currently available have a standard maximum term of up to 40 years.
At what cost?
The main benefit of borrowing over an extended period is that it helps with affordability, but at what cost? You’ll end up paying more interest overall.
A longer term may allow you to borrow more, so you’ll need a smaller deposit. However, you’ll need to be aware that the equity in your home won’t grow as fast as you’re paying the debt back more slowly.
You’ll also need to consider whether a longer mortgage term will mean that repayments carry on into retirement.
We’re here to help
If you’re thinking of extending your current mortgage to reduce your monthly outgoings or you need advice on a new mortgage, we're here to help. Talk to us about your mortgage needs and discuss what extending your mortgage term would mean for you.
Your home may be repossessed if you do not keep up repayments on your mortgage
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If we can assist you with any of your mortgage or protection needs, please don't hesitate to get in touch! |
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pat@mcdaidmortgages.co.uk 07968 155 176
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ryan@mcdaidmortgages.co.uk 07746973929
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damien@mcdaidmortgages.co.uk 07810 001750
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patrick@mcdaidmortgages.co.uk 07715255908
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Income Protection – for everyone |
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Interesting data1 has highlighted that although over 50% of married couples rely on both their incomes to cover the expense of their monthly costs, just 13% have purchased income protection (IP). This leaves a huge number of couples and their families vulnerable to financial shocks.
And don’t forget stay-at-home parents
In addition, the research cautioned that when applying for protection cover, people tend to focus too much on the breadwinner, overlooking the contribution of stay-at-home parents. With 28% of stay-at-home parents saying their partner would have to take time off work if they were unable to look after their children due to illness or injury, the impact on household financial resilience could be significant.
Times have changed
It is vital that people appreciate the potential impact of not having the appropriate cover in place. Having IP means you know you’ll always have money coming in if you were to lose your income for medical reasons (physical or mental, illness or injury). Everyone’s circumstances are different, whether you’re single, married, children, no children, working or caring, we adopt a tailored approach to protection requirements, get in touch, we can help.
Ask us for your personalised risk reality report. We've given an example below of Steve & Leanne, both aged 30, Steve smokes and Leanne doesn't. They both intend to retire at 67 years of age.
There's a 74% chance that either Steve or Leanne will be unable to work for 2 months or more, suffer a serious illness or pass away before the age of 67. We can't guarantee what will happen in the future, but we can help you financially protect yourself and your family.
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As with all insurance policies, conditions and exclusions will apply
1LV, 2023
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Can we help your friends or family?
Most people we're speaking to are worried about the cost of living crisis. If you have friends or family that need mortgage advice, we would be delighted to help.
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Would you like to leave us a review?
We're actively asking people to leave a review of our service on Google. We would love to hear your feedback on our support. You can click the link below to leave us a review on Google.
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Your property may be repossessed if you do not keep up repayments on your mortgage. As with all insurance policies, conditions and exclusions will apply. You may have an early repayment charge to your existing lender if you remortgage. Not all Buy To Let Mortgages are regulated by the Financial Conduct Authority.
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40
Coneyville
Derry
BT48 8FW
United Kingdom
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