It seems every week in the property market mortgages is where everyone’s gaze is held… With changing interest rates and a domestic, and global, financial crisis this is understandable.

However, our last update in January said that compared to last Autumn the Mortgage market may be settling. Well even with the recent Bank of England Interest rate rise to 4%, this previous comment still seems to be holding true.

We would, as always, remind you that we are an Estate Agent and don’t provide financial advice. However, we can certainly introduce you to our incredible network of brokers and IFAs who can and will guide you in your own personal circumstances.

How Has the Recent Interest Rate Increase Affected the Market?

If you’re looking to buy a home right now, or you’re coming to the end of a fixed-rate mortgage deal, you may be anxious or eager to know how this will affect you, as the recent interest rate rise of 0.5% takes the Bank’s Base Rate to 4%.

However, the good news is that this was expected by lenders. So It doesn’t necessarily mean it will be more expensive to get a mortgage, explains Rightmove’s Mortgage Expert Matt Smith.

Matt Smith, in a recent article, explains The BoE Base Rate is forecasted to increase in the first half of the year, but not by as much as the market first thought in the aftermath of the mini-budget.

What Will Happen to Mortgage Rates?

Mortgage Rates began to fall throughout the end of 2022, and as the market has stabilised, it is predicted that they will continue to fall. Even if only gradually. This is because lenders have priced in higher Interest Rates.

The Mini-Budget of Autumn 2022 shocked the market, which is why we saw such spikes in rates and withdrawals of products.

According to Matt Smith, “There’s some good news for buyers, as lenders are competing for business and have been reducing their rates further in January. Most five-year, and many two-year fixed-rate deals are now being offered below 5%, compared to more than 6% at their peak in October last year”.

How to Plan

It is important to plan ahead right now. Whether it’s moving home or renewing a mortgage. This will give you the best chances of your target outcome.

Engage with the right Estate Agent and ensure you are working with a Mortgage Broker / Financial Advisor that has access to whole of market; If you require an introduction then we have a fantastic network of trusted advisors we can connect you with.