In times of rising interest rates, buyers need to be nimble. Peter Joseph explains why its never too early to start the mortgage and conveyancing process
With interest rates on the rise, time is of the essence when buying a property. It pays to make sure you are in a position to get moving quickly so read on to discover our top tips on how to get prepared.
Check what mortgage deals are currently available
How you’ll be affected by an interest rate rise depends on what mortgage you’re on and when your deal comes to an end.
The positive news for borrowers is that because UK interest rates have been historically low since 2008, they are increasing from a very low base point.
This means rates are still very attractive. So, if you are looking for a new mortgage, do your research on what’s available and keep a good eye on future forecasts.
Calculate the impact of an interest rate rise on your monthly mortgage payments
Bank of England interest rates also affect the interest charged on other forms of borrowing, such as bank loans, credit cards, and car loans.
We are also experiencing rising living costs and higher inflation which will also impact your finances and how much you can afford each month on mortgage repayments. Using a mortgage affordability calculator will help you work out your monthly finances.
You can calculate your monthly outgoings which will then allow you to estimate how much you can afford to borrow for a mortgage.
You can also use this to change repayment periods and interest rates to match any mortgages you are thinking of getting. This is the perfect opportunity to review your finances – you might even find ways to save money.
Speak to a mortgage adviser
It’s possible that the Bank of England will decide to increase the base rate again in May, so if you are thinking of locking in a new mortgage, sooner might be better than later.
There are plenty of options out there, with new mortgage products becoming available all the time – something which can seem confusing.
Mortgage advisers have access to the widest selection of mortgage deals and are best placed to give you access to the best of these which suit your own individual circumstances.
Get your conveyancing quote sorted
There is a lot to do to get a house ready to sell or to prepare to buy so adding ‘get a conveyancer quote’ to your to do list is essential.
One of the best ways to speed up the property buying process is to research your conveyancing quote early.
If you are someone who likes to look for the best value, then start your conveyancing research before your property goes on the market or you find the house of your dreams.
Speak to an online conveyancing firm like Home Legal Direct who will be able to give you advice and get your conveyancing instruction underway.
Have your paperwork prepared
Having all documentation easily to hand is key to ensuring a speedy transaction. Whilst you cannot always rely on others to be as organised, you do not want to be responsible for holding up exchange day.
A conveyancer will require a whole raft of information. This includes an up-to-date Energy Performance Certificate (EPC), any planning permission, and building regulations approval for any work you have had done, property deeds, a property information form, and a fittings and contents form.
It’s a long list of required information and needs time to get filled in so start early.
Remember – being prepared is key in an ever-changing market and it really does pay to stay ahead of the game. It could make all the difference to the success of your transaction!
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