Get ahead of rising mortgage rates with William Davis Homes

Cost-of-living increases, rising interest, fixed rate mortgage confusion and fears around mortgage rates – it all adds up to an uncertain time for first-time buyers and homeowners buying a new house. However, the picture being painted may not be as bad as you think. Below we take a closer look at what’s happening through the expert eyes of the independent mortgage experts we work closely with. Together with our suite of offers, we can help you understand your options, get the best mortgage deal, save thousands on your new home, and help answer the common question: how much mortgage can I afford?

The story so far

Mortgage rates have been a hot topic for some time and recent reports will have done little to boost confidence. At the time of posting, the average 2-year fixed rate mortgage has risen to 6.19%. That’s the highest it’s been since November 2008.

5-year fixed mortgage rates have also increased to an average of 5.82%. Buyers are understandably concerned. But as always, knowledge is power…

The importance of understanding your affordability

Faced with constant news about the high cost of living, it’s easy to think the worst. But the fact is, many people don’t actually realise how much they can borrow. Often maximum affordability figures found online or via a generic mortgage repayment calculator are overly cautious and differ greatly from one source to the next. The resulting confusion has left many buyers believing they cannot afford the house they want (and need) when in fact they can.

Oliver Peace, our independent mortgage expert explains: “It’s crucial for buyers to seek professional mortgage advice when establishing their affordability early in their house-hunting journey.

With news of increased mortgage rates and higher costs of living, all banks and building societies are lending significantly less than they did 18 months ago. Despite lenders being less generous, our experience is that borrowers self-researched affordability is often significantly lower than it is in reality. Increases of £15-20,000 are common, but we have seen differences of as much as £65,000!

A skilled adviser will take a deep dive into your financial circumstances, looking at everything from income structure to credit histories and commitments whilst also understanding your own personal housing objectives. There are over 100 lenders on the market, all of whom have wildly varying criteria, allowing them to compete for market share. This means that maximum borrowing figures can vary enormously between lenders and commonly as much as £30-45,000 for the same buyer!

A broker’s in-depth knowledge of criteria may mean that a borrower could access a cheaper lender or even enable them to borrow more than they originally hoped at a lower monthly cost. Securing a great rate is only part of the story.”

We make moving possible

We’ve been helping people move into their dream home for over 87 years, and today is no different. Whether you’re a first-time buyer, outgrowing your current home, or looking to downsize, we have options (and offers!) to help make your move possible. In today’s current market that means helping you to beat the cost of living and get ahead of rising interest rates with a mortgage you feel comfortable with and a home you love. That’s why right now, we’re offering a Monthly Mortgage Subsidy…

Monthly Mortgage Subsidy explained

Developed with our team of independent financial advisors, our Monthly Mortgage Subsidy is designed to contribute to your monthly mortgage costs and make moving into your dream new home more affordable, whatever your budget. It’s calculated to save you £50 per month for every £50,000 of the purchase price, up to £750 per month for two years*. All you have to do to be eligible is complete on a new William Davis home before 31st August 2023. Find out more here.

*Terms and conditions apply.

Five more reasons to move now

1. Save up to £2,200* a year on energy bills
New build homes are significantly more cost-efficient to run compared to older homes. With better insulation and installation practices, you could save up to £2,200 a year on your energy bills, when you buy a William Davis Home. *(HBF, July 2023).

2. Part Exchange
Don’t know where to start with how to sell your house?We know selling your house can be stressful, so we’re here to make it easier. Part Exchange allows you to trade in your current house to part pay for your new William Davis home. Find out more here.

3. Assisted Move Scheme
We can help you sell your house quickly! Use the services of our preferred agent to speed up the process and we’ll cover the costs. Find out more here.

4. Deposit Assist
To help make owning your dream home even easier, we can help you increase your deposit, so you can borrow less. Just ask our consultants for more information.

5. Save up to £24,000 on your dream home, in Sutton Bonington
For a limited time only, we’re giving you the chance to save up to £24,000 on selected plots at Lime Gardens, our beautiful development at Sutton Bonington. Each EPC “A” rated home features a generous garden, garage and ample space for established and growing families. Find out more here.

Make your move

We have a great suite of offers to help make moving possible and save you thousands. For more information get in touch here.

In the meantime, you can explore our developments, take an immersive virtual tour of our homes, and book an appointment to visit our show homes, all through our website.