Habito Weekly: What are you more terrified of, clowns or mortgages?

It’s Halloween today and we’ve already seen everything from creepy clowns to bad Thriller costumes, all attempting to evoke the fear factor in everyone around them. We couldn’t help but think about the terror millions of people feel about getting a mortgage. So what scares you more, a creepy clown or getting a mortgage?

A clown is the only answer — have you seen them *shudders*. Why? Mortgages don’t have to be terrifying, if you’re willing to take greater control of your finances. Education is the first step, so here’s a few of our CEO’s personal Tricks & Treats. And, of course a closer look at what happened in the world of mortgages this week and how it’ll impact you:

Interest rates could rise again

Today, the property market proved it was on the road to recovery after the Bank of England released the latest mortgage lending figures — the highest since Brexit. We’re seeing similar growth here at habito with September being our highest ever month to date, thanks in part to the low interest rates.

That said, Mark Carney’s speech last week, confirmed it was unlikely for interest rates to drop again due to the drastic slump in the pound and resulting inflation. What that means for homebuyers, homeowners and savers alike, is that interest could definitely go back up. And our prediction is that it could be as early as Spring 2017.

So while it’s worth taking advantage of the low interest rates now, do so with a potential increase in mind. They won’t stay this low forever.

Move over generation rent, homeownership is still a priority

The majority of adults plan to own a home in the next 2–10 years, according the Council of Mortgage Lenders (CML). Over 7 in 10 adults want to be homeowners in two years’ time, and 8 in 10, hope to be homeowners in ten years. With rising house prices and a shortage of houses for sale, many of those think it’s harder than ever for young people to buy their own home. This is likely down to the highly praised help-to-buy-scheme coming to an end later this year. But as we’ve said before, there are plenty of options out there for first time buyers — from shared ownership to 95% mortgages (yes there are lenders that do them!).

#MortgageFacts — Stamp Duty

It’s one of those fees that most mortgage calculators leave out, so when you’re ready to close you’re expected to manifest a couple thousand pounds out of thin air. So, let’s try to avoid that by explaining what it is as it differs for first-time buyers and second-home owners: Stamp duty is the land tax you pay if you’re buying a residential or commercial property. It’s paid in a lump-sum and is a percentage of the property’s value. If you’re buying your first property, stamp-duty is less, but if you’re a homemover or buying a second home it costs more. Money Saving Expert provides a great break down here, so you know what you’re likely to have to pay if your house costs £125,000 or £750,000.

Wherever you are in your homebuying journey, check out our mortgage calculator to see what you can afford to borrow or save. And yes, it even includes stamp duty.

One to Watch: There are some brilliant property tech companies emerging trying to take the pain and frustration out of the prehistoric housing issues and processes we all face today (ourselves included!). From selling your home to getting a mortgage to conveyancing, all are paper-based, have countless stakeholders and take an extraordinary amount of your time. So when we come across a brilliant idea, one that’s genuinely flipping the industry on its head, we have to share. This week it’s Nested.com. They will sell your house within 90 days, or lend you the money for your next house purchase interest-free. You can even check the website before you sign up to understand how much your home is worth in their eyes. In such a difficult seller’s market, this is the guarantee homemovers have been looking for!

Habito is the UK’s digital mortgage broker, using technology to bring the mortgage application process into the 21st century. Honest, transparent and easy, homebuyers can be sure they’re getting the best mortgage on the market for the first time. No jargon, no fees and no misinformation. Visit habito.com.

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