by Jonathan Harris
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17 Jan, 2023
January has got off to a positive start for the mortgage market. While the trend in base rate continues to be upwards, with a further interest rate increase expected at February’s Monetary Policy Committee meeting, fixed-rate mortgage pricing continues to edge downwards. Several lenders have been cutting their fixed-rate mortgages in recent weeks after rates soared on the back of the ill-fated mini-Budget in late September. While sub-1 per cent five-year fixed rates are long gone, it is now possible to fix for five years at just over 4 per cent, with expectations that rates could edge down further in coming weeks. Those coming up to remortgage should plan ahead. Seek advice from a whole-of-market broker such as Forensic Property Finance, who can search the market on your behalf and recommend the best deal for your particular circumstances. Products can be booked up to six months before you need them, depending on the lender, so it’s worth checking when your current deal comes to an end and planning accordingly. If you reserve a rate only to find that there are cheaper deals available when you come to move onto your new mortgage, you are not obliged to stick with the product you secured – you can move onto one of the cheaper deals. Some borrowers are also considering variable-rate mortgages, such as base-rate trackers with no early redemption charges. The idea is that they then switch to a fixed rate if pricing comes down further. This can be a good strategy for those who can afford fluctuations in their mortgage payments but those who are on tighter budgets may wish to opt for the certainty of a fixed rate regardless. Forensic Property Finance can advise as to the best course of action. Get in touch for more information.