Update on the Mortgage Market: Best Practices for an Easy Mortgage Process

Welcome to a report on the mortgage market! February has flown by compared to January, and it doesn't appear to be slowing down.

We've had the busiest start to the year thus far, and we're really excited about 2024.

Even with the fluctuations in interest rates, the market remains strong and there are many excellent deals being offered.

This month, we want to go over some essential advice to help your buy or refinance go as smoothly as possible.

Make an informed choice when selecting a solicitor

Talk to them about what you're trying to accomplish and be sure they are qualified to assist.

Additionally, make sure they can commit to the timeline you require and be very explicit about it (an actual date is required; an ASAP won't do).

This holds even greater significance when buying at auction. Recently, We have witnessed several solicitors who are obviously inexperienced with more complex deals.

You are still paying the same amount, but this places a lot more pressure on us and the lender's attorney to make sure it closes!

Get the best deal and be familiar with the region

The build expenses and the GDV are largely predetermined, but you have influence over the buying price, which determines how much profit you make on a deal.

With a solid purchase price, we see clients making more than the typical 15% profit on their end value.

We don't mean attempting to purchase something "below market value," since the true value of a property is determined by what another party is prepared to pay.

However, you might choose for properties that are in bad shape or have problems that keep people from purchasing them for a family residence.

As a result, there is less competition and a greater chance of obtaining a better deal. Your profit will be directly impacted by overpaying.

Make sure you do your homework and use reasonable figures

By working with a reputable bridging business, you can ensure that all of your figures are verified and that you know how your property will be assessed in the end, including whether or not it qualifies for a commercial valuation and what that means.

Being realistic when choosing your figures is crucial.

It makes no sense to start a project based just on the most optimistic estimates for construction expenses and final value because there's a good chance things won't go as planned!

Although there should be some leeway, it's surprising how many individuals we talk to who are dealing with extremely light figures and don't account for any contingencies. Market fluctuations can affect your end value when you get there too.

Recently, we have witnessed several instances when build expenses have skyrocketed, leading to refinancing problems. In order to make up the gap, clients have had to take out loans or further loans from family.

In several cases, it has negatively impacted their credit, which can make them unable to borrow money in the future. We don't wish to frighten anyone, but you should enter with an open mind!