NI mortgage turmoil: Experts offers advice as lenders have ‘pulled the rug’ from prospective property buyers

A real estate market research expert said a move by lenders to withdraw mortgage products “has pulled the rug out from under these potential buyers.”

Issuers including Halifax, Bank of Ireland UK and Virgin Money UK temporarily withdrew mortgage offers in response to rising interest rates.

dr Michael McCord, who compiles Ulster University’s house price index, said: “The Bank of England has forced lenders to take drastic action to ensure they keep or maintain their lending margins.”

dr McCord told the BBC’s Good Morning Ulster program on Wednesday that Northern Ireland was sitting on a “mortgage time bomb” as experts scramble to explain the current situation to concerned customers.

“The withdrawal of mortgage products has pulled the rug out from under the feet of potential buyers and those looking to lock themselves into the best possible deal at this time,” he told the Belfast Telegraph yesterday.

also dr McCord, an instructor in real estate market research, has offered his best advice to all concerned.

“My advice would be to speak to a qualified financial advisor who can search the market to get you an offer that best suits your circumstances as they will be able to identify the best rate and product.

“With rate hikes showing no signs of being cut, fixed rates offer some security and protection from potential further rate hikes.”

For anyone interested in remortgaging their property, Dr. McCord to go for a fixed rate.

A fixed-rate mortgage is a mortgage that doesn’t change, which means you’re not affected by changing interest rates.

“I’m actually thinking maybe two years (fixed rate) because rates are already up and may be stabilizing.

“For a savvy, I might mention a discounted base rate tracker. Some are only 2%. If rates go up 2.5%, they’re still where fixed rates are anyway.”

Mortgage advisers across Northern Ireland are in a difficult position as they need to reassure clients, unaware of how much guidance will change in the coming weeks.

Orlagh Hallett, a consultant and expert working with the Mortgage Advice Bureau said: “The mortgage market in Northern Ireland is still very lively and lenders are introducing new products on a daily basis.

“Everyone’s circumstances are different, so I would suggest you speak to your mortgage advisor for more information tailored to your individual needs.”

Orlagh, who has over 20 years of experience in the financial market, also advises the same to anyone interested in refinancing.

“(A mortgage advisor) will review your circumstances and offer advice on the best course of action.

“There are many options, so it’s worth discussing them with your advisor.” NI mortgage turmoil: Experts offers advice as lenders have ‘pulled the rug’ from prospective property buyers

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