Progressive changes in the mortgage market have been gradually taking place for many years, including modifications to policies, criteria, affordability and product accessibility. These are the reasons why we are exploring how to navigate the mortgage market. However, due to the pandemic, we now witness these alterations happening at lightning speed, affecting borrowing needs and personal finances such as employment statuses and income-generating opportunities.
To summarise: our world has grown more intricate while the world of mortgages has become even more complicated. As mortgage rates began to settle at the end of 2022 after years of unprecedented fluctuations, obtaining a mortgage has become more convoluted than it had been in some time.
The Bank of England’s increase in the base rate to 4.5%, marking the highest borrowing costs since 2008, is likely to leave homebuyers and mortgage holders with a heftier bill than last year, not to mention fewer mortgage products available.
However, now that the situation’s realism has been laid bare, there is no need to feel despondent. On the contrary, planning and obtaining expert advice means you can still find an offer that meets your needs without breaking the bank.
Is now a good time to buy?
While some sources have reported a decline in the housing market, property website Rightmove has announced that first-time buyer asking prices have hit a new high of £225,000. 
According to the Nationwide Building Society, house prices fell by 2.7% in the year leading up to April. However, Halifax and Rightmove reported an increase of 1.6% and 1.2% in house prices over the same time period, respectively.
The Royal Institution of Chartered Surveyors believes that although there is potential for a turnaround in house prices within the next year, they are expected to remain weak in the short term.
Should you wait for the market to stabilise before buying a house, or should you take the risk and buy now? Our answer is simple, similar to our response to the question `Who is the best lender?` the best lender often meets your needs and understands your financial situation.” In the same sense, the right time to buy is when it suits a borrower’s means and circumstances. If you require a mortgage, it might not be something you are likely to put on the back burner, but of course, because you need one. These are all reasons that will inadvertently put you on the path of how to navigate the mortgage market.
The cost of living has increased dramatically; have people stopped buying food? The favourable answer is when the market is still falling, and you can negotiate good deals. For example, there is a decent selection of mortgage deals for people who can only manage a 5% deposit. However, a bigger deposit will give you more choices and better rates.
How To Navigate The Mortgage Market
If you want to be ahead of the game, exploring your options as soon as possible is best. For borrowers feeling overwhelmed and confused by their choices, seeking advice from a mortgage broker with access to all available mortgages is an ideal place to begin. These professionals will search tirelessly for the most advantageous deal that fits precisely within your budget and lifestyle.
Save now and secure a great deal on mortgage rates up to six months ahead. Then, if come the time that you need it, interest rates have dropped even lower than when you booked, your reservation is non-binding, so there’s no pressure to stick with what you’ve got. This is a good option on how to navigate the mortgage market.
Getting a decision in principle (DIP)
Before you can apply for a mortgage, obtaining an Agreement in Principle (AIP) or Decision in Principle (DIP) is essential. This is because AIP/DIP provides information on how much of a loan a lender can offer, and many sellers or estate agents will ask for this assurance before giving any form of approval.
When estate agents and vendors see that you already have a principal decision from the lender stating how much of a loan amount you can borrow, they will take your offer seriously. Get this essential paperwork taken care of first so that when the time comes for submitting offers, all there is left to do is make the complete mortgage application.
Sourcing the best rate for your situation
Although rates are still much higher than a year ago, the average five-year rate has dipped below 5% for the first time since September. The market continues flirting with the idea of dropping interest rates, making it an opportune time to source the best rate.
Last September, the market was upended when many mortgages were withdrawn in reaction to the government’s mini-budget. This caused two-year fixed mortgage rates to skyrocket back to levels not seen since 2008 during the global financial crisis. Fortunately, things have settled down again, and today you can find some of the most affordable deals hovering around 4% – 5%.
UK interest rates, what’s happening?
This is an area that can be explored to show how to navigate the mortgage market. Although interest rates have risen, mortgage rates have actually decreased from their highest point of 6.65%. According to Moneyfacts, the average two-year fixed rate is 5.6%, while the average five-year deal is 5.42%. This is all subject to loan-to-value calculations.
Furthermore, consumers now have a more comprehensive range of mortgage products as the market has seen an increase in options, reaching the highest level in over a year.
According to finance expert Rachel Springall from Moneyfacts, “While there was mixed interest rate competition among lenders last month, fixed mortgage rates are anticipated to decrease in the upcoming months. However, this will be subject to changing swap rates and lenders’ willingness to do business.”
Why should burrowers seek advice from Connect Mortgages?
To avoid costly standard variable rates from your lender, it’s essential to start researching a new remortgage deal approximately six months before the expiration of your existing one.
With a vast selection of options, you can uncover an incredible deal for your mortgage if you’re willing to dedicate time and effort to a comprehensive go thorough a fact-find with our expert mortgage brokers. An equally important part of this endeavour is our experience of making the process less daunting. 
When looking for great mortgage deals, comparing multiple lenders and quotes is prudent. That is where Connect Mortgages comes in. With access to an array of exceptional loan opportunities, having over 170 lenders to choose from can make the difference. Ultimately, this is how to navigate the mortgage market.
