In this article, we will highlight some of the major changes in the UK mortgage market this year.
The latest data from the Bank of England shows a rise in interest rates in September from 1.75% to 2.25%. This 0.5 percentage point increase is the seventh rise since December 2021.
In addition, there has been an increase in the amount of money that banks are willing to lend to borrowers. This means that more people can now afford to buy homes at current prices.
However, it also means that lenders have become more selective about who they offer mortgages. As a result, many borrowers may find themselves unable to get a home loan if their credit rating isn’t good enough.
This could mean that you need to be prepared for a longer application process and higher monthly repayments than before.
If you want to know what your chances are of getting a mortgage, then feel free to contact our team of expert mortgage brokers.
Mortgage Market – Current Uncertainty & Volatility
We have also seen the latest changes in the UK’s Political and Economic Environment (PEE) which includes the appointment of new Prime Minister Rishi Sunak on 25 October 2022. According to the experts, the appointment of Rishi Sunak as the New Prime Minister has helped to settle the markets and the average rate of fixed-rate mortgages has been down from the peak.
According to a report provided by MoneyFacts, the average rate of a 5-year fixed-rate mortgage has gone up by 0.16 % since the start of this month to 4.24%, a rise of 1.6% compared to Decembhttps://moneyfacts.co.uk/news/mortgages/er 2021.
Also, the number of mortgage deals available is edged up to 3,066 from 2500 since the start of this month. This number is still very low as compared to 5999 recorded by Moneyfacts in December 2021 before the interest rates began to rise.
We have seen tremendous changes in the UK mortgage market this month. We hope that these changes help you with your financial planning and make sure that you don’t miss out on any opportunities. If you would like to discuss anything further, please do not hesitate to contact us.
Mortgages and Interest Rates
As mortgage brokers, we have received a lot of enquiries about the current interest rates and the cost of mortgages. People in UK are showing resistance to investing their money into property because of the uncertainty surrounding current economic and political conditions. However, we also believe that the best way to invest in property is to purchase a house or flat when the price is cheap.
According to an estimate, at least two million homeowners on variable rate deals will face an immediate rise in their monthly repayments. First-time buyers and remortgages will also face much higher mortgage costs when securing a suitable deal.
If you are interested, you can also work out the monthly cost of a mortgage against various interest rates by contacting an expert broker from our team.
With the sudden changes in the UK economy and Political environment, first-time house buyers are uncertain about investing their hard-earned money into property. However, there are still some great deals available for those looking to buy a property. You should always look for the best possible deal and take advantage of all the offers that come your way.
Our team of expert mortgage brokers are here to assist you with your financial needs. Feel free to contact us anytime.