“I think one of the main challenges facing clients is the low rate / high fee vs high rate / low fee dilemma. With some lenders charging arrangement fees as high as 10% of the loan amount, it is easy to be swayed by the lower pay rate. But clients should always make sure they/their broker is checking the overall cost of borrowing on a case.”
He continued: “I think 2024 will be fairly stable for the specialist mortgage market, with a slight downward trend in interest rates. All in all, I think this will lead to more investors looking to acquire new assets as well and refinancing existing properties to raise equity for these purchases.”
How could the general election impact the mortgage industry?
Of course, a general election is also on the horizon this year, which could impact Sanford and other brokers’ day-to-day work.
“In the specialist and investment world I think the political changes that would impact me and my clients would more be around tax for landlords/properties,” he commented, “and also planning changes to increase the ability for investors to create new dwellings, whether that be new builds or conversions of existing property.”
Sanford has been with Hampshire-based broker VIBE for nearly three years. The business is primarily engaged in property-based finance for commercial and residential property investments, including buy-to-let, HMO (houses in multiple occupation), commercial, semi-commercial, bridging, refurbishment and development loans.