Mortgage Rates Edge Down

The Bank of England announced its biggest interest rate rise in 30 years last week, lifting rates from 2.25% to 3%. It also warned of a prolonged recession while also looking to temper market expectations for further aggressive monetary policy tightening.

With this being said, we have continued to see mortgage lenders reduce rates across a number of their products and introduce new options for current and new borrowers.

In this week alone we have seen Paragon introduce a range of new buy-to-let switch products, including a 2 year discounted variable rate at 4.09%, with no early repayment charge.

Specialist lender Accord has amended a selection of products reducing rates by between 0.10% to 0.20% and Nottingham has reduced BTL and limited company BTL stress rates.

We are pleased to see lenders making reductions across their product ranges, this is bringing further stability to the markets and will benefit homeowners and buyers with both small and large deposits.

How we can help
Rates are starting to edge down, however, there is no guarantee that deals will last and not be replaced with mortgages charging higher rates. 

We recommend you schedule a call to speak to one of our award winning mortgage brokers. They’ll be able to review your circumstances and provide you with options that suit you. 

If you would like to discuss your current mortgage or have a large portfolio that you’d like us to review, speak to a member of the team or our senior broker, Danny O’Keeffe on 0208 364 3444.

Warning Bank of England will raise interest rates again
Bank of England chief economist Huw Pill has said that interest rates are likely to rise further as the Bank can’t claim victory in its attempt to stop inflation becoming embedded in the economy. He stated that interest rates are likely to rise further, in an attempt to prevent inflation leading to a spiral of higher wages and prices.

UK house prices fall most in almost two years Halifax says
UK house prices have fallen at the fastest rate in 20 months, as the surge in mortgage costs hit demand. The average price fell by around £1,000, or 0.4%, in October, Halifax reported, pulling down the annual rate of house price growth. Economists have predicted that house prices will keep falling, with many predicting a drop of around 10%.