MORTGAGE RATES HAVE BEEN AT THE FOREFRONT OF MANY PEOPLE’S MINDS OVER THE PAST 12 MONTHS, AND MORE SO IN RECENT WEEKS AS THEY ROCKETED UP. THIS WAS PRIMARILY A RESULT OF UNCERTAINTY CAUSED BY THE GOVERNMENT’S MINI-BUDGET IN SEPTEMBER.

In the second half of 2022 we have seen mortgage rates reach over 5% at the cheapest levels! This has caused hardship and difficulty for many re-mortgaging or moving in the market…

However, there has since been an Autumn Statement and another mini-budget that has now stabilised the market, which has resulted in many lenders reducing rates. This seems to be contrary to the horror stories circulating the news and social media.

Where are we now and what’s the outlook?

We would firstly 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.

What we can do is report on the facts of the market as they are now and how many experts predict it will go.

According to Moneyfacts data, the average two year tracker rate stood at 3.69% on the day of the base rate increase at the beginning of this month. The very next day this figure increased to 3.85%. This figure continued to rise slightly over the following days.

Meanwhile, average fixed rate deals have moved in the opposite direction.

The average two and five year rate stood at 6.46% and 6.30% respectively on the day of base rate change. Since then, the average two year fixed rate has dropped 0.11 percentage points while the average five year fixed rate has seen a 0.18 percentage point drop. With certain lenders this drop has continued further.

So if you’re due to re-mortgage or trying to move, what should you do to get a reasonable rate in the current climate…?

Our conclusion and advice

Contrary to most of the media coverage, there are many good deals still to be had in the mortgage market!

Remember that there is a wide range of lenders, so likely an option out there that suits your needs. Unless you are an expert in the market then we advise you speak with an ‘Whole of Market Mortgage Broker’; Don’t pick and go directly to an individual lender or simply accept your increases from your current lender.

At 360 Properties we have an excellent and trusted network of Mortgage Advisors that we work closely with and would be delighted to introduce you to them. Simply contact us today to be connected!

In Aylesbury: Call us on 01296 767555 or email office@360-properties.co.uk
In Hartlepool Call us on 01429 804300 or email office@360-properties.co.uk