Friday, 17 October 2014

There’s Good News For The Mortgage Borrowers As Rates Hover At Low Levels

Posted at  09:59  |  in  Mortgage

mortgage rates
As per recent reports, mortgage rates will hover around 2%, again at their record low levels and this trend will probably become a norm in the months to come as lenders engage in a price war that looks all set to intensify in the run-up to Christmas! Last week the Bank of England said that while mortgage availability had fallen considerably over the summer, it was expected to rise over the next few months. In the month of April, 2014, as the lenders started to get grip with the new affordability rules, it was even more difficult to take out a loan.

But these changes have now been embedded and in spite of the expectations of a rate rise by the Bank of England, cheaper deals are expected to emerge in the next few weeks. All those who have struggled to take out a mortgage loan such as those who are self-employed, can all expect a softening and lenient approach from the lenders. For all the struggling borrowers in the market, mortgage deals are already getting a lot better. While the words “price war” might not be appropriate, but this is what seems to be happening right now. David Hollingworth, a mortgage broker is also of the same opinion.

Some vital tips for the potential borrowers in the market for 2014-2015

If you’re someone who is in the market to buy a house in the later half of 2014 or at the beginning of 2015, you need to be careful about the steps that you take. Here are some tips that you can take into account before hitting the market.

1.      Improve your credit score: With low mortgage rates and lenient lending standards of the lenders, it is now pretty easier to grab a good rate but that doesn’t rule out the necessity of a good credit score. Since your credit score is the number that speaks about your financial records and your monetary behavior, always make sure that it is high enough to create that effect on the lenders. Even though you don’t have a good score, you can always have the opportunity to boost your credit score by the effective credit repair tips.

2.      Lower your DTI ratio: If your total debt level is high enough in accordance with your income, this may have a bad impact on the mortgage lenders. But nowadays, most borrowers have huge amounts of debt and therefore they need to be careful about taking the required steps to pay down their debt. Unless you pay down your debt amount, you can’t reduce your debt-to-income ratio. Get help of the debt relief companies and grab a favourable rate on your mortgage loan.

3.      Shop around: Although there will be a number of mortgage lenders who can lend you a good number of favourable mortgage loans, you should still shop around and get quotes from different lenders so that you can compare and contrast the rates and choose the best one according to your budget.

Therefore, if you’re wondering about buying a house in 2014-2015, you should take into account the above mentioned factors. Choose the best loan and keep repaying it on time to avoid an imminent foreclosure.

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Jimmy Simond is founder of he share his immense knowledge of finance in this blog. You can follow him on Google+.


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