2023 is here.

Christmas 2022 is over and done with and 2023 has started.  January is a time for new beginnings and it’s also a time where we have the most motivation to do anything.  

If you like your traditions, then no doubt you’ll have done a big spring clean on Hogmanay.  All cupboards gutted (and you find that jar of spice which is 4 years out of date...) or you finally defrost your freezer.  It’s a good feeling to get such things done.  

Life Admin in January

Christmas time is the most popular time for proposals, ahead of even Valentine’s Day.  Congrats if you received a marriage proposal.  One of the life admin things to do now is get that ring onto your home contents policy.  Depending on the value this can affect the cost of your contents insurance.  Our best advice is to shop around for new insurance and see what’s on offer.  Bear in mind, the devil is in the detail.  

January is also the time to job hunt, lots of companies see January as a good time to recruit too.  The talent pool is bigger and more diverse with people actively looking for new roles/promotions.  Some companies also determine their recruitment budget in January/February so there’s more on offer.  

When considering a new job remember to review all their benefits, are you gaining more in your basic income but losing out on holidays, pensions etc?  When you do get the new job, it might also be time to review your personal protection portfolio.   We blogged about what to look for in a benefits package, find the blog here.

And for those with mortgage deals ending soon or within the year, now is the time to have a chat.  You can secure a remortgage deal six months before your current one ends.  With another rise to the base rate due on the 2^nd February, it’s good to get your deals sorted now.  Bear in mind that Team MFS will monitor what’s happening with rates so if they drop before you remortgage, our team can review the offer and do what’s best for you.  

Or do you want to move home?  Perhaps buy your first home. It’s not all doom and gloom as per the media.  It's always best to get the best advice for you.  Looking online can often give generic advice.  Speak to an experienced and knowledgeable mortgage broker, they can find out your needs and tailor the advice to your needs.  

What about for Team MFS?

We’re on the road again.  Cameron will be with Barratt Homes at their Ness and Culloden developments in Inverness.  The event on Saturday 14^th January is for first-time buyers so be sure to book your appointment here.

Next will be Stephen in Elgin at the Findrassie site on Saturday 21^st January. This event is aimed at first-time buyers and you book your appointment here.  

Both advisors will be on hand to deliver bespoke advice to buying your first home and navigating the world of lenders, property buying and moving into your new home.  

Cameron’s view of 2023.

The last base rate increase in December didn’t impact much on mortgage rates overall.  Cameron, our Director, reckons that rates will eventually fall this year to around 4%, with the average mortgage rate being 4%.  This is likely to be the latter half of the year.  

The base rate will continue to increase this year, it’s currently 3.5% and we expect it to rise 4% and decrease once inflation decreases over consecutive months.  The last 12 months of increases has started to see inflation fall, especially after the peak of over 11%.  Inflation will be the big focus and there are some experts who forecast inflation to drop to around 4% by the end of 2023.  

How does this affect mortgages and buying properties?  In the first quarter of 2023 I do expect house prices to drop.  They have dropped in November and December, which is the usual market trend for that time of year. Whilst there will be a drop, it won’t be as much as 20%, which some industry experts think.  I think that house prices will drop to pre-pandemic levels.

One of the biggest hurdles facing a buyer will be accessing a deposit.  It will come down to the size of deposit which has been saved or gifted.  The current mortgage rates are a limiting factor too for those with a small deposit, 10% or less.   Very simply, those that can afford to move will do so, and possibly negotiate a better purchase price.  

For first-time buyers it isn’t all doom and gloom.  My best advice is to work out what you can afford; mortgage payment and all the monthly bills.  When you know this figure, start setting aside the difference between the new outgoings and your current outgoings.  If you can save that difference between now and buying your next home, you’ll know that you can afford it and you’ve got a bigger deposit.  

When reviewing your mortgage deals, it is better to seek the advice of a mortgage broker.  Mainly because it saves you time and they can access far more deals than you can in a short space of time.   Being informed in 2023, especially with your finances, will ensure you get the right deals for you.  

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YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

This firm may charge a fee for mortgage advice. The amount of the fee will depend upon your needs and circumstances. This will be discussed and agreed with you at the earliest opportunity.

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