Recent weeks have shown sustained rate reductions in the market, with some media publications going as far as using the term “lender price war” to explain the current situation.
We don’t believe a lender price war is on the cards but we are seeing a trend in lenders slashing interest rates. Most recently Halifax, HSBC, Virgin Money and Yorkshire building society have all cut selected fixed rates across their respective home loan ranges and The Mortgage Works introduced the first sub-5% buy-to-let deal, a move previously considered unthinkable.
Borrower Caution
Despite this optimistic outlook, the markets remain cautious. It is anticipated that another interest rate hike is on the horizon. The Bank of England is set to announce its base rate decision tomorrow, 21st of September. The markets expect the Bank to raise interest rates from 5.25% to 5.5%. However some economists anticipate the 15th increase in this cycle by the central bank to be the last.
As we stand on the potential cusp of sub-5% rates making a return, a safety-conscious approach is advised for borrowers. We recommend utilising our “Flexi Lock” service which can offer a safeguard, allowing you to secure optimal rates up to six months in advance, with the flexibility to switch to a more favourable/lower rate if available.
How Can We Help?
No matter your lending needs, our consultative approach is focused on your big picture objectives. We have in-depth mortgage expertise and long standing relationships with a vast number of lenders.
And with approximately 42% of all mortgages only available through a mortgage broker it would be advisable to book a FREE call to discuss your needs.
Contact us today on 0208 364 3444 or click here to schedule a free consultation call.