Mortgage advice: Aberdeen property expert shares his top tips as the cost of living crisis continues

By Rosemary Lowne

October 27 2022, 5:00 pm

Managing mortgages: Sean Sinclair, a mortgage and protection advisor at the estate agent Peterkins, shares his top tips on mortgages as the economic crisis continues. Photo supplied by Sean Sinclair.

With almost half of Scots reportedly struggling to afford their mortgage payments due to the escalating cost of living crisis, we asked Sean Sinclair, a mortgage and protection advisor at the estate agent Peterkins, to share his top tips for homeowners and potential buyers.

What advice would you give someone whose fixed rate mortgage is up for renewal?

Firstly, if your fixed rate is ending within seven months it is important to speak with a whole of market mortgage adviser as soon as possible. In the short term, available rates may rise further so the earlier you assess your options the lower a rate you may be able to secure.

Some lenders will offer you a new rate as little as a few weeks before the end of your current fixed rate, whilst others allow you to apply for a new fixed rate over six months in advance. As you can see, it makes sense to check what’s on offer with all lenders.

A problem shared is a problem halved: Sean Sinclair, pictured left, is on hand to give people advice on their mortgages. Pictured right is John Barrowman, the head of financial services at Peterkins. Photo supplied by Peterkins

Do you have any advice for people who are looking for a mortgage?

I cannot overstate the importance of seeking whole of market advice. This will allow you to ensure that you have considered all aspects of the application process and the availability of mortgages across the entire market. Everyone’s needs are different and an adviser will help you prioritise them to make certain that you get the most suitable mortgage for your circumstances.

You’re not alone: Sean Sinclair says many people are worried about their mortgages but says help is available. Photo by Shutterstock

What advice would you give to someone who is unable to afford their mortgage?

Again, talk to a mortgage adviser who will help you investigate your options, including extending the term of the mortgage and / or securing a lower interest rate. If you cannot afford your mortgage and will be unable to do so ever when considering any possible changes, it is important that you contact your lender as soon as possible. In some instances they may agree for you to take a payment holiday or reduce your payments temporarily, if you suffer a short term reduction in income as an example.

Although be careful if entering into an arrangement, as it may be recorded on your credit file and go against you in the future. If you are worried about losing your home I also suggest speaking with Citizens Advice Scotland.

It helps to talk: Sean Sinclair can offer people help and advice with their mortgages. Photo by Shutterstock.

What about first time buyers?

Everyone’s circumstances are unique. If you’re considering buying, an adviser can work out a budget with you and help you consider how your future plans and any potential changes in income or interest rates may affect your ability to service a mortgage.

Not overcommitting oneself is always sensible.

Property outlook: Sean says it’s hard to say what will happen in the property market over the next few months. Photo by Shutterstock.

What impact is the economic crisis having on mortgages?

It’s too early to say to what extent the local market and property prices will be affected. Prior to the Chancellor’s mini-budget on 23 September the market was still performing well locally with a healthy demand from purchasers. Since the mini-budget the market has been quieter.

For more information contact Sean Sinclair on 01224 428276, email ss@peterkins.com or go to their website www.peterkins.com