Mortgage experts warn that mortgage myths are leading househunters in the North East to miss out on their dream home by failing to take advantage of the lowest base interest rates in more than a generation.
The Bank of England has held the base rate at 0.5 per cent since March 2009, and it has generated remarkable opportunities for customers in the mortgage market.
But financial advisors are increasingly concerned that househunters are failing to make the most of a golden situation because many mistakenly believe that extra application checks introduced in April under the Mortgage Market Review (MMR) have locked them out.
Adam Champion, New Build Sales Director at New Homes Group – which advises customers of top five housebuilder Linden Homes – said rather than being a time to step back, now is actually the moment for househunters to buy.
He said the situation had led to lenders bringing out impressive new products, with savvy customers with hard earned deposits or those using Help to Buy being able to now pick up three-year fixed rate mortgages at 2.99 per cent.
Adam said: “There are a number of deals to be had right now with a range of lenders coming to the fore including Skipton, Accord and Santander, all with compelling products to be had for first-time buyers right through to those buyers with larger deposits.
“Also, the changes from the MMR were intended to root out bad borrowing,” explained Adam. “However they have also had the effect of frightening off customers who are perfectly able to afford a mortgage. There are myths that the process is now horrendously complex – and that’s just not true.
“Lenders have quickly adapted and in fact, responsible lenders like Halifax have had similar systems in place for up to 10 years, so there is little new here to be worried about.
“Househunters should be encouraged by the possibilities. The MMR changes are there to protect the customer and guide them to finding product that suits them best and gives them the most protection. There are some amazing deals out there – so don’t miss out.”
Linden Homes Sales Manager in the North East, Kate Brooks, added: “It’s a real shame for househunters if mortgage myths are getting in the way. We’re doing our best to dispel the misconceptions. As a builder of new homes we work with our financial partners to take buyers through the whole process, advise at every stage, and to get the best mortgage deal possible.
Linden Homes is currently building at The Sycamores in Birtley and has plans for further developments in Saltwell, Morpeth and Ponteland.
For further information, contact Paul Dobbie at Persuasion Public Relations on 0845 071 0678 / 07967 197 224 or email email@example.com
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