After all the excitement of last month, The Bank of England Monetary Policy Committee has voted to keep base bank rate at 0.5 % in December. The MPC vote was unanimous.
Market commentators say that the decision was expected, so the increase last month had the desired effect on the economy.
It's difficult to say what effect this has had on mortgage lenders, as most of them made their moves around October. Some lenders tweaked their rates up for new borrowers in anticipation of last month’s increase, and some reduced their rates – quite simply because the end of the year is nigh and some lending targets have still not been met. Borrowers are still taking advantage of extremely low mortgage rates.
This month however, existing borrowers will see their mortgage payments increase if they are on the lender’s standard variable rate (SVR).
Everyone with a mortgage should check if they are on the SVR now, as the rates will rise from historic lows this month. In most cases you'll notice the 0.25% difference - adding up to £200 per year per £100,000 of a mortgage.
There are still cheap fixes available, with 5-year fix rates from as low as 1.75%! Mortgage Required saved a client £340 a month by swapping them from their lenders standard variable rate to a fixed. That should help with the Christmas shopping!
If you would like to discuss your mortgage arrangements, please contact us on 01628 507477.
Data shows landlords could miss out on green mortgages due to expired energy performance certificates.
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.
10 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.
11 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.
14 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.
21 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.
23 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.
28 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.