PRESS & INSIGHT

The Bank of England has held base rate at 5.25 per cent for the fifth consecutive meeting. The decision was widely expected as it looks as though efforts to bring inflation under control are working, with expectations growing that a base rate cut will come in the next few months. The Monetary Policy Committee voted by a majority of eight to one to maintain Bank Rate at 5.25 per cent, with one member voting for a reduction in rates to 5 per cent. Swap rates have fallen in the past few days on the back of lower inflation figures and if this trend continues, we could see lenders reduce their mortgage pricing. Even if this is the case, mortgage rates will still be higher than the rock-bottom deals borrowers have grown used to. Those remortgaging this year will be moving onto higher rates although they will be lower than would have been the case a few months ago. Whether you are remortgaging or moving house this year, it’s important to plan ahead and speak to a whole-of-market broker about the mortgage options available to you. Nobody has a crystal ball and can safely predict what will happen with rates but a rate can be secured several months before needed, giving peace of mind, and borrowers can move onto a lower-priced product when they take out the mortgage should rates have fallen by then. Get in touch for more information.

The Bank of England held base rate at 5.25 per cent for the third consecutive meeting. The decision was widely expected by the markets as it looks as though efforts to bring inflation under control are working, while there are also fears that the UK economy is in danger of falling into recession following weak GDP figures. The Monetary Policy Committee voted by a majority of six to three to maintain Bank Rate at 5.25 per cent, with three members preferring a 0.25 percentage points increase to 5.5 per cent. Lenders have been reducing their mortgage pricing in recent weeks and we expect this trend to continue into the new year. After a disappointing year for lenders, they will be keen to do more lending in 2024. While mortgage rates continue to move in the right direction, pricing remains significantly higher than the rock-bottom deals borrowers have grown used to. Those coming up to remortgage or take out a mortgage should plan ahead and speak to a whole-of-market broker. Rates can be booked up to six months before needed, giving you peace of mind, plus you can always choose another lower-priced product when you come to take out the mortgage should rates have fallen in the meantime.

The rise in rates has meant one Mail Online reader fears their payments will increase by £1,000 when they come to remortgage in December. Jonathan Harris, managing director of Forensic Property Finance, says : 'The base rate has risen over the past 18 months as the Bank of England battles to get inflation in check, pushing up the pricing of variable-rate mortgages. Swap rates, which underpin the pricing of fixed-rate mortgages, have also risen significantly, making fixes more expensive. We all have to get used to paying more for our mortgages as the era of rock-bottom rates is in the past... but there are steps you can take if you are worried.' Read the full article here .

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.

Five-year fixed-rate mortgages are overtaking shorter fixes as the most popular mortgage of choice among borrowers

With property prices continuing to rise, first-time buyers are having to drum up significant deposits to realise their property ownership dream

Brokers list the pitfalls first-time buyers need to be wary of when trying to get on the housing ladder

How equity release can be used to help children and grandchildren onto the property ladder

HSBC has launched a market-beating two-year fixed-rate mortgage pegged at 0.94 per cent for those with a 40 per cent deposit.