Finances – Independent Financial Advisers helping you prepare yourself for your move

24 August 2021

Finances – Preparing yourself for a move and what has been happening the last 18 months?

Great! You know why you want to move, and you know where you want or need to move to.

Next is the dreaded conversation with the Bank, Building Society, or ideally an Independent Financial Adviser.

I always recommend my clients to make sure that they have spoken to a finance professional before entering the market. Why? We need to ensure what you want to do is possible from a feasibility perspective, before you incur any costs.

In my many years working in the area I have had multiple dealings with an array of advisers from Infinity Financial Advice, they are one of many local companies/individuals on hand to help guide you through the lending process.

As discussed on the video above with James Sutton MD of Infinity Financial Advice the benefits of using an independent or whole of market adviser are abundant.

To name but a few common ones; they are usually more accommodating and flexible, meeting out of hours. They test the whole, or a large cross section of the market for lenders and products including non-high street lenders. Unlike Banks or Building Societies, your service will be personable: meaning when they advise you, they will understand you and what is best for your situation. They usually have access to a range of products at preferential rates with their main lenders that consumers do not have direct access to. If heaven forbid, there is a problem during the conveyancing process regarding finances, you have a professional in your corner ready to act on your behalf!

In short, it is a no brainer to ensure you have sat with at least one financial adviser, a mortgage is one of the most expensive products you will purchase during your lifetime, make sure you spend the time doing your homework and get yourself in the best possible position.

Over the last 18 months with covid, the mortgage and lending market has gone through a roller-coaster of drama, briefly as summarised by James:

From Spring last year when lock down 1.0 initiated, banks and building societies became very rigid and stricter regarding their lending criteria.

Banks and lenders at the time were under massive logistical challenges from both a demand and supply perspective.

Firstly, they were dealing with moving from large offices to a mobile workforce. This was more challenging for larger firms. Preventing the teams in place from working at their usual efficiency and diminishing their ability to supply.

Secondly, this was aggravated further by the fact that many people were eagerly trying to contact their existing lenders about “mortgage holidays”. This massive excess in the usual demand faced was also bolstered further with the announcement of the “government stamp duty land tax holiday”. Further stimulating demand for new mortgage products and increasing delays and back log regarding new mortgage product enquiries and offers.

These logistical problems were compounded by a massive increase in uncertainty. With a globally unprecedented pandemic many lenders were concerned with what the future held. As such, they increased the size of deposit required from 5%+ to 10%+.

They also increased the interest rate at which they were willing to lend.

These two factors meant that some people were priced out of the market due to deposit contribution requirements and those who did access products at the time paid over the odds relative to The Bank of England’s base rate which is at a historic low.

Thankfully, the New Year bought with it positive news; increased confidence in the property market from an increasing number of property transaction and prices across the nation, news of a potential vaccination been found and rolled out, decreasing spread of the virus and other government purchase incentives such as the government backed 5% mortgage products.

These factors have seen the ease in accessibility of finance in particular, the first-time buyers’ market.

If you are a first-time buyer there is also Homes England Help to Buy scheme that is accessible also at 5% deposit, been topped up by up to 20%.

Thank you for reading this and hopefully it gives you an understanding of the benefits of using an Independent Financial Adviser before entering the property market and some of the constraints of the last 18 months.

If you would like to reach out to James and his team at Infinity Financial Advice, see their details below:

Infinity Financial Advice

0330 223 1113