With mortgage rates on the rise in 2022 and this trend seemingly set to continue in 2023, prospective buyers are considering ever more creative approaches. So what are these angles and will we be seeing more of them?
Circumventing rising mortgage rates
Both new buyers and those who have already established their place on the property ladder are trying to manage costs and control risk. Areas being explored include joint borrower sole proprietor schemes, buy-to-let products and other niche mortgage products. Joint borrower sole proprietor mortgage legal advice will be essential for those seeking to go down this route.
In this particular example, a buyer may exploit a loved one’s higher income to secure a mortgage of sufficient magnitude. This can be an option if you have your sights set on a particular property that would otherwise lie beyond your reach. Do bear in mind that affordability criteria are there for a reason. Committing to a mortgage that is vastly beyond your own means can soon become an issue financially. That is why Joint borrower sole proprietor mortgage legal advice is so important.
New, innovative products in the mortgage market
New mortgage products are emerging, with some relatively innovative ideas out there. Green mortgages have become a hot topic in recent years, with those buying more eco-friendly dwellings securing better rates than those available on comparable properties with less favourable eco credentials. Similarly, self-builds, new-builds, and holiday ownership mortgages are all potentially eligible for different deals, depending on which provider you choose to go with.
In addition to new mortgage products, innovative financial management and planning tools for new and existing buyers are available online. Whether you are looking for a mortgage calculator to help you find out exactly what you can afford or tools to help you see just where you can save in your existing or planned monthly budget, it’s all out there. Of course, none of these tools will replace the advice of a seasoned financial adviser or property professional, but they’re a great starting place for those looking for information.
A changing market with changing approaches
A changing property market means both new and seasoned buyers need to adapt their approach. Now more than ever, buyers should seek the advice of experts to ensure they can afford the home of their dreams in the long run. This in no way means you should curtail your vision of the property you’re looking to settle in – you just need to be a little more cautious and prepare insofar as you can.
Getting the right advice from financial advisors, property experts and support from a conveyancing solicitor or licensed conveyancer means that you can look for the property of your dreams with the reassurance that you’re not going to wind up in financial trouble. In current times, this has unfortunately become a significant risk for many.
Innovative, niche mortgage products can help you secure the home you really want, but you need to understand the implications of each product. With expert advice, you’ll be sure you’re getting the best possible deal and taking advantage of any of these products that apply to your situation. This may both save you money in the long run and help you secure the property of your dreams.