Page 17 - ESPC_Dec24

EXPERT ADVICE

How can you make your mortgage

more affordable? property’s Home Report valuation and means
you spend less money on bidding over the
value, which in turn means you could increase
Lisa Bell, independent mortgage advisor at ESPC Mortgages, shares how the amount of deposit you are putting down,
you can potentially bring the cost of your mortgage down. therefore decreasing the loan-to-value –
which all means that your monthly mortgage
payments will be lower.

Bid cleverly
n the current financial climate, you might Use a mortgage advisor
be worried about the future cost of your Employing the services of an In the current market, properties are
Imortgage – whether you’re a homeowner independent mortgage advisor is one generally selling for much closer to
coming to the end of a fixed term, or if you’re of the best things you can do to be sure that their Home Report valuation. According to
looking to purchase your first property. you’re accessing the best mortgage for your ESPC’s latest House Price Report, properties
individual circumstances. A good mortgage are selling for 102% of their Home Report
valuation on average.
The impact of a long period of consecutive advisor will assess your circumstances, and
interest rate rises has been well-documented, tailor their advice to your personal needs.
with mortgage rate rises amounting to In essence, this allows you to offset the cost
thousands of pounds in additional expenditure At ESPC Mortgages, we use an in-depth of higher repayments, as you can use more of
for households across the country. questionnaire in the first instance, to ensure your savings to contribute to your mortgage
that we can fully understand your situation. The deposit.
However, there may be better news on the questionnaire includes a budget planner, and
horizon: the latest Bank of England interest looks at your salary, outgoings, dependants Extend the term of your mortgage
rate review (at the time of writing, in November and other expenses, to help you understand It’s not ideal, but if you think that
2024), brought the interest rate down to 4.75%, what you realistically have available to spend you might struggle to meet higher
increasing the likelihood of some lenders on a mortgage payment each month. repayments, then extending your mortgage Move to a cheaper home
reducing their mortgage rates in alignment. term may help as a short-term measure. It may not be your first choice, but
This is a key first step in making sure that you Extending the mortgage term means that if circumstances mean that your
If you’re concerned about the cost of owning fully understand how much of a mortgage you will pay more money over the lifespan of monthly repayments are going to cause
a home, here are my top tips to make your you can afford and applies whether you’re a the mortgage, but it does mean that monthly huge stress or financial difficulties, then
mortgage more affordable: first-time buyer or a homeowner. repayments can be lowered to keep them moving to a more affordable property could
affordable. reduce your monthly outgoings.
Buy a fixed-price property
If your circumstances change and you can Get mortgage advice today
Under the Scottish system, many afford to pay more in the future, then you ESPC Mortgages is a team of independent
properties are marketed for ‘offers should consider reducing the mortgage term mortgage advisers based in Edinburgh.
over’ a certain price, inviting prospective to avoid extra years of interest repayments. With many years of experience, they are
buyers to bid as much as 20% (and sometimes
more!) over the property’s value to secure it – Again, a mortgage advisor can guide you well-placed to help you purchase your first
property. Get in touch with the team on 0131
on whether this is a measure that could be
a figure which isn’t covered by your mortgage beneficial to you. 253 2920 or fsenquiries@espc.com.
amount. This means that buyers need to use
their own savings to cover their bid, as well as
their initial mortgage deposit.
The information contained in this article is provided in good faith. Whilst The initial consultation with an ESPC Mortgages adviser is free and
However, when you buy a home at a fixed every care has been taken in the preparation of the information, no without obligation. Thereafter, ESPC Mortgages’ charges for mortgage
responsibility is accepted for any errors which, despite our precautions, advice are usually £395 (£345 for first-time buyers). YOUR HOME MAY
price, this is likely to be much closer to the it may contain. BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A
MORTGAGE OR OTHER LOANS SECURED AGAINST IT.
16 | espc.com espc.com | 17