A question that many people are asking - why have mortgage rates gone up after the Bank of England chose to reduce the bank rate to 4.75%?
The recent Autumn Budget and the US elections may have something to do with this as they have added a little uncertainty around which way rates are going. This has unfortunately resulted in most fixed rates increasing.
Another contributing factor are swap rates which mortgages are indirectly linked to, as well as lenders looking into their plans to balance their efficiency and profitability.
What is going to happen to fixed-rate deals?
Last month saw rates as low as 3.75% (five-year fixed) during mid-October. However, the majority of these sub-4% deals have now been pulled. Despite this unwelcome news for borrowers, it is important to remember that we haven’t had any signs for rates to drastically increase. We are still expecting the base rate to fall over time, the market is just unsure how fast this will be.
Another reason rates may reduce is of course if demand for mortgages slow down. The hope is as the market settles then rates may continue to trend downwards.
Should you fix now?
It is important to remain proactive when securing your mortgage rate.
“Our message remains consistent – secure a rate at the very earliest point, protecting you from the volatility, and then review this rate regularly to take advantage of any reductions or shift in the perception of the market.” – Craig Head, Director.
Speak to our friendly, professional advisers at Mortgage Required for bespoke advice: 01628 507477 or email team@mortgagerequired.com.
Buying a house is a big deal, and where you are planning to buy will make a difference financially. In this short blog, we look at the most affordable and most expensive areas and how much you need to be earning to buy in there.
8 days ago
Equity release is a type of mortgage that allows homeowners 55 and over to access money from their property's equity without having to leave their home. This is done by securing a loan against the house which is usually repaid by selling the property when the borrower passes away or has to move into long-term care.
9 days ago
It’s important to ask questions about the property you are interested in before taking that step to make an offer. A little probing can make all the difference between buying your dream house or something that requires a lot of work.
12 days ago
There are millions of homeowners over the age of 60 who are likely to release money from their homes to pay for their lifestyle during retirement giving those who are 'asset rich but cash poor' a way to live out their retirement the way they wish.
19 days ago
The average age of a first-time buyer in the UK is two years older than 10 years ago. This is understandable with managing the cost-of-living and challenges within the economy such as high interest rates making it difficult to get onto the property ladder.
21 days ago
Skipton Building Society launches ‘Delayed Start’ mortgage meaning first time buyers won’t be required to make repayments for the first three months.
According to a survey by Skipton, first time buyers who bought their home in the last five years found that in the first three months of living there, they were spending upwards of £30,000.
26 days ago
If you have recently moved into a property with a garden that requires a little TLC, or you’d like to get on top of your current green space, check out our tips.
29 Apr 2025
High street lender, NatWest, have launched a new product to help first-time buyers purchase a property with assistance from a family member or friend to get them on the property ladder sooner.