Page 14 - December 2022

EXPERT ADVICE EXPERT ADVICE

Is now a good time to The importance of affordability when
move house? choosing a mortgage

Lyndsey Beckwith, Area Director of Paul DeMarco, an ESPC Mortgages independent mortgage adviser, discusses
Property Sales at Gilson Gray LLP, how to find an affordable mortgage during the cost-of-living crisis.
discusses what should be taken into
account when buying or selling a
property in the current climate. here’s no denying that the economy is With interest rates at their highest level now for
facing a range of challenges, but what 15 years, you would be advised to check not just
Tdoes this mean if you are getting a how much you can borrow but how much your
mortgage for the first time? potential mortgage repayments will be.

Buying a home is a long-term financial ESPC Mortgages are here to help
investment so it’s important to understand your ESPC Mortgages can help with all aspects of
budget. Speak to an independent mortgage understanding your budget and applying for
adviser to discuss your options. Historically, a mortgage. Give us a call on 0131 253 2920 or
how much you were able to borrow was set email fsenquiries@espc.com
by income multipliers of approximately four to
t is no surprise that there is a lot of
uncertainly in the property market at the four and a half times your income. Nowadays,
Imoment – you only have to turn on the news different lenders will lend different amounts,
or read the headlines and you wouldn’t blame based on your individual circumstances.
anyone for being nervous about moving house. Premiums being achieved over home report
Whilst there is no denying there is a lot of are not as high as buyers’ budgets tighten. How much you can borrow is based on your
negative reporting about the cost of living, the However, we always felt the market would cool income minus your monthly commitments,
property market in Edinburgh and the Lothians a little in the second half of 2022. Unlike the last such as regular loan repayments, car finance,
is still performing relatively well, in particular recession, there is definitely still a good appetite credit card balances, maintenance and with most
the family home sector where there is still a out there for buying and selling. providers, childcare costs will be factored in.
shortage.
Activity levels in the last quarter of 2022 are Lenders will also factor in how much deposit
If you’re selling, viewing levels are lower than similar to those seen in 2019, the last year of you are able to pay. The bigger the deposit, the
the first half of the year but buyers looking typical market trends, before the pandemic. lower the loan to value which will give you a
for a property are serious and that is who you This should provide some comfort that the lower interest rate.
want viewing your property rather than a lot of market is still moving.
people just browsing the market. Buyers now All of these factors will impact how much you
have more opportunity to secure their home As an ESPC Chartered Firm, we are constantly can afford to borrow and repay every month.
with less competition at closing dates (the reviewing the market and looking at our ways
number of closing dates has decreased from of working to ensure we are doing all we can
40% in June to around 32% now) or they are to help potential buyers and sellers secure the
simply negotiating a deal with no competition. right home for them. The information contained in this article is provided in good YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP
faith. Whilst every care has been taken in the preparation of the REPAYMENTS ON A MORTGAGE OR OTHER LOANS SECURED
information, no responsibility is accepted for any errors which, AGAINST IT.
despite our precautions, it may contain.
ESPC UK LTD is an appointed representative of Lyncombe
If you have any questions about the process of buying or selling a home in Scotland, get in touch with Gilson Gray LLP The initial consultation with an adviser is free and without consultants which is authorised and regulated by the Financial
on 0141 530 2021, gilsongray.co.uk or stop by our office at 29 Rutland Square, Edinburgh, EH1 2BW obligation. Thereafter, ESPC Mortgages charges for mortgage Conduct Authority.
advice are usually £350 (£295 for first-time buyers).
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