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The mortgage sector has been basking in positivity for a number of days now fuelled predominately by the positive inflation figures shared by the ONS last week.
A number of lenders, large and small have announced that they have or will be lowering rates in the coming days. For example Accord mortgages have slashed rates by up to 0.16% and Pepper Money has announced their “biggest rate reduction this year” with rates reduced by up to 0.95%.
We are also expecting larger lenders like HSBC to announce a wave of reductions at some point today.
The repricing follows last week’s long-awaited good news on the cost-of-living crisis, when the rate of inflation fell more quickly than expected to 7.9%.
That prompted economists to pare back their expectations for how far the Bank of England will need to raise interest rates over the next year. The market now expects rates to peak at 5.75%, well below the peak of 6.75% predicted earlier this month.
It is expected that the Bank of England will raise the base interest rate again on the 3rd of August. Therefore this could be a good time to lock in a low rate before rates go up again.
Cautious Optimism
It is important to note that at the time of writing, we are seeing some lenders increasing rates, this includes fixed rate rises by Clydesdale Bank and Santander for intermediaries who has increased residential and landlord rates for new and existing borrowers by up to 67 basis points.
Take Action
Remember to get in touch if you have a fixed rate mortgage that is due to end within the next 6 months. Our award winning mortgage brokers will be able to secure a rate switch within 6 months of your product expiring. And you won’t be locked in until the new deal starts.
This means we can continue to search the market to find you a better rate with your current lender or withdraw the application and resubmit with a new lender at a lower rate.
For mortgage help and advice please feel free to contact our team on 0208 364 3444.
Asking rents have risen by more than £550
The typical cost of renting in London has increased by £559 a month in just four years, analysis has revealed.
Property portal Rightmove found that the average asking rent in the capital in the second quarter of this year was £2,567.
This is up from £2,008 in the spring of 2019, meaning prices have soared by almost 28% in the period dominated by the Covid-19 pandemic, Brexit and a prime ministerial merry-go-round.
Inner London asking rents have risen by 14 per cent in a year and 26 per cent since spring 2019, the report found.
Locations where homes sell the fastest
Popular property portal Zoopla tracks speed of property sales in the UK – the time it takes from a property being listed for sale to being sold subject to contract.
Their latest analysis shows that UK homes are selling in 30 days on average. But some homeowners could expect to sell in just 21 days, depending on where they live.
The amount of time a property spends on the market is a very seasonal measure. Generally, property sells more quickly in the first half of the year than the second half.
However, the current time to sell is 10 days slower than this time last year, when more people were moving after the pandemic.