New Mortage Questions

Bjx

Hi Everyone,

I'm new to the forum, and I apologise if my question has been asked in the past.

I'm currently speaking to my Mortgage adviser, and I have a reserved property with the Developer. With the increase in the interest rate and the possibility it will increase again, what are my opinions here? Getting a Mortgage is not a decision one makes lightly, and I want to know if my decisions are good regarding this current period. I know I can't make a perfect decision, and I'm not looking for one. 

I want to know what kind of questions I should ask my advisor and what I should look out for, especially regarding this period. I have a Mortgage illustration, and now we are pushing for the main one. 

Thanks 

TheJP

What stage of the buying process are you at? Exchange, close to completion?

There is not much your advisor can tell you outside of your personal circumstances, they cant predict if rates will fall or rise. 

You are asking for advise on what questions you should ask but related to what? If you have a mortgage illustration then you would have done a full application at this stage, is it affordable? Will you complete before the offer runs out? 

K_S

Bjx said:

Hi Everyone,

I'm new to the forum, and I apologise if my question has been asked in the past.

I'm currently speaking to my Mortgage adviser, and I have a reserved property with the Developer. With the increase in the interest rate and the possibility it will increase again, what are my opinions here? Getting a Mortgage is not a decision one makes lightly, and I want to know if my decisions are good regarding this current period. I know I can't make a perfect decision, and I'm not looking for one. 

I want to know what kind of questions I should ask my advisor and what I should look out for, especially regarding this period. I have a Mortgage illustration, and now we are pushing for the main one. 

Thanks 

@bjx A mortgage adviser can't tell you whether or not it's a good idea to take out a mortgage, buy a particular property or whether rates will fall/rise if you wait. Their job is to take your situation and preferences into account and recommend what mortgage product (if any) would best meet your requirements and circumstances.

If the broker has already recommended a product and shared a mortgage illustration (also known as a KFI or quote) that means the above process is already done and based on their conversation with you, the recommended product is suitable and cost-effective for your circumstances and requirements.

The illustration will contain all the details about the product - lender, loan size, how long it is fixed for, any fees involved, what the initial interest rate is, the current SVR rate, what overpayments you can make, etc. etc. You could go through the illustration in detail and ask the broker any questions you may have.

With a new build, it is very important to understand what happens if the build gets delayed and the offer needs to be extended. Lenders have different new-build offer extension policies, some expire at 6 months with no extension possible while at the other extreme some will allow 6+6 months at the same rate.