Expert Mortgage Broker Sarah Tucker Answers Questions From Homeowners | This Morning

Homeowners and potential buyers have been left feeling ‘completely powerless’ after lenders withdrew mortgage deals at the fastest rate on record, in response to the Chancellor’s mini-budget. But thankfully expert help is at hand, as Mortgage Broker Sarah Tucker joins us to answer your questions.

It’s homeowners and potential buyers have been left feeling completely powerless after lenders withdrew mortgage deals at the fastest rate on record in response to that mini budget well thankfully expert help is at hand mortgage broker sarah tucker is joining us now to answer your questions good morning it’s lovely to have you here today and you said actually the

Last week has been extraordinary you’ve never seen so many lenders pull out no um in such quick space of time that’s the biggest thing um and so it’s just created panic absolute fear so why did that happen the reason that happened is complex but basically the market reacted really badly to the mini budget swap rates increased at a rate that we so quickly we haven’t

Seen increase that quickly in two days and the mortgage lenders essentially um pulled out to reprice deals what that meant for others is they were panicking because we obviously for other people when mortgage lenders pull out you’re thinking this is bad you know people aren’t they ending but the reality was mortgage lenders needed to to reevaluate what was quickly

Happening in the market and the market response was very negative and has that improved now that there have been uh there’s been this u-turn um studied the markets a wee bit and does that mean that uh there was an overreaction there was a bit of hysteria that it has calmed down in the long term a little bit we have seen mortgage lenders coming back on the market

The rates have gone up though quite dramatically with some lenders so not necessarily an overreaction and but certainly people have got their heads around it quite quickly that’s what the mortgage market’s good at it’s very resilient and it does move quickly we have to well let’s get some um help because claire’s on the line now hi claire hello hello lovely to

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Talk to you so what’s your situation at the moment because you’ve got a five-year fix that ends in february right yes yeah and at the same time i also have my equity free health by loam finishing at the same time as well so both are coming at a terrible time really um you want to know whether you should remortgage for the 20 value of your house on top yeah so

Um obviously it’s difficult financially anyway so ideally or i think ideally the best solution would be to try and remortgage with the 20 value of the house on top so we get rid of the help to buy loan and but just really is that the best option is it sensible to do that at the moment with obviously everything or all the interest rates and everything just going up

And up okay i think the biggest thing is if you can afford to do it then great and because we would always say to people and help to buy a loan pay it off as quickly as you can because then you of course own the whole property um in this scenario because the interest rates are high i realize it’s not the best time and but equally if you can afford it and you’ve

Looked at all your options and it may well be worth doing still i would have a look at what it looks like to keep the help to buy a loan just because the interest rate in year six is a lot lower and than what you’ll get on the market at the moment but it does go up in year seven and continues to from there so um definitely weigh up all your options but if you can

Afford it still stick to your original plan all right thank you claire thank you for calling um realistically when we talked to martin lewis and martin says so often would you never heard him say before i throw my hands up either realistically how much wriggle room is there um there’s things you can do i think when people are in a fear response which a lot of the

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Country are understandably so we tend to think in black and white terms it’s how we’re wired but there’s lots of things in the middle of the black and white it’s not as simple as i can’t afford it and i’m going to lose my home and you can for example these aren’t traditional things we would say but we would we could look at extending your term and trying to lower

That monthly payment and spreading it over a longer period you can actually get mortgages at a much later age now or potentially people could release some equity to really help with the burden of the rise in interest costs the rising energy prices and you can look at interest only again it’s not traditional we wouldn’t normally say let’s look at interest only but

This is not normal time and we have to try and help what about maxine she says my mortgage is risen from around 849 pounds to 1149 pounds which is pushing me to the limit with such ridiculously high rates will rates continue to increase even more or is there any way i can appeal to my mortgage company i wish you could appeal to your mortgage company but now um you

Can’t otherwise i think that’d be our full-time job at the moment and as i just said there are explore the ways to reduce it would be my message to maxine and certainly if you’re not looking at a fixed rate fix it because then if interest rates do increase you’ve got your fixed rate there and but definitely if she’s going to struggle the biggest thing is keep your

Mortgage payments up so explore ways with an expert as to how you can reduce it for the next two to five years just to get you through and is that how long we’re in this pool experts are saying the interest rates could settle in in as little as two years um back to normal normal times we can’t compare them to what we in the industry call covert cheap rates they

Are they were historically low and and we shouldn’t ever expect them to really go to that level um so yeah settling means not one or two percent of certainly but it does mean a bit less than what we’re seeing at the moment okay um wendy said what is happening with the government’s help to buy mortgage scheme after the five-year interest-free period expires are they

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Going to help buyers by extending the interest-free period well i think as we’ve seen things can happen very quickly with the government decisions and they normally happen when the expiry date is coming to an end which is the 31st of october this year you must complete by the end of march next year so i guess watch this space um there are other schemes being looked

At to replace it and but certainly it does look like at the moment it is going to end jenny says i’ve recently been offered a mortgage but i’m now living in fear that it will be retracted is there a big chance that this can happen to me it’s a very low chance that it will happen we haven’t seen it yet and past years lots of years ago that sort of thing was happening

I think that’s people’s biggest fear that if you’ve got a mortgage offer you generally are in a good position you should be able to keep that fixed rate until you can me um and uh i think we can just get katie’s in is it wise to leave my fixed rate early i think it might be my only option but i’m also concerned about increasing payments should i re-mortgage early

And fix a new rate it’s really dependent on what that looks like her early repayment charge could be quite hefty and if she’s got a really good rate it might be worth keeping it for a bit longer and enjoying that rate so i’d look at both scenarios with her look at how much it’s going to cost her there’s always an exit fee to exit a fixed rate early so she’s going

To have to look at that properly and really understand it thank you thank you thank you

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Expert Mortgage Broker Sarah Tucker Answers Questions From Homeowners | This Morning By This Morning