Securing the best product rate in a volatile market…

In last week’s newsletter we spoke about the optimism surrounding the property market fuelled predominately by lenders competing for customers by reducing interest rates.

This trend has continued with more lenders making rate reductions across residential and buy to let product ranges.

For example, effective from today Nationwide Building Society will be reducing selected rates by up to 0.81 percentage points and introducing a new range of fixed and tracker rate products with a £1,499 fee. These changes mean Nationwide’s rates start at 3.84% – its lowest level in eight months.

This follows rate cuts announced by a number of large lenders including, Barclays, Leeds, Metro Bank and TSB.

Will the base rate fall?
Although lenders are reducing product rates, tensions in the middle east and an unexpected rise in UK inflation figures has meant there is still a chance the Bank of England, in it’s upcoming Feb 1 MPC meeting, may hold rates for longer.

A recent Reuters poll showed economists saw no chance of a rate cut on Feb. 1, but a slim majority expected one before mid-2024.

Lenders begin to react
We have seen a number of lenders increase product rates on the back of the recent inflation news, this includes Santander who has announced that today, they’ll be increasing selected standard residential fixed rates for purchase and remortgage clients and withdrawing a number of other exclusive products.

What if rates decrease after locking in my product?
With our “FlexiLock” service, we will search the market for the most suitable product for you and continue to monitor this right up until the product goes live.

Our experienced brokers will liaise with you multiple times before the product goes live. And if we find a lower cost or more suitable product for your circumstances, we will switch the product over.

In practice this means cancelling the rate we had secured and swapping over to the improved rate. This is done with no extra charge to you.

Is your mortgage coming up for renewal?
If your mortgage product is coming up for renewal in the next 6 months, we encourage you to get in touch with our mortgage brokers.

Speak to our award winning mortgage brokers
Whether you’re considering buying a new property, remortgaging, or just seeking advice on the best course of action in this volatile market, our team is here to assist you. Get in touch now on 0208 364 3444 alternatively click here to schedule a free consultation call.

Sunak considers radical plan for 99% mortgages to help first-time buyers
The government is considering a radical scheme to help first-time buyers by guaranteeing mortgages which would require just 1 per cent deposits.

The prime minister and Jeremy Hunt, the chancellor, are contemplating the bold plan to appeal to young voters struggling to get onto the property ladder, The Independent understands.

Government sources said a Treasury-backed scheme to help “generation rent” is one of the big ideas being discussed for Mr Hunt’s spring Budget on 6 March.

Details on the scheme are scant, but the idea is that it would remove one of the major hurdles — saving for a deposit — for would-be first-time buyers trying to get a foot on the ladder by allowing them to do so with just a one per cent deposit.

But while some have welcomed the proposal as a much-needed boost for first-time buyers, others have warned it could inflate house prices and put homeowners at risk of negative equity.

Labour has promised 25-year fixed-rate mortgages.
Labour has promised a “revolution” in the mortgage market to open the door to 25-year fixed-rate mortgages for millions of homeowners.

Outlining her plan at the weekend, shadow chancellor Rachel Reeves said longer fixed-rate deals would enable people to buy houses with smaller deposits and with lower monthly repayments.

Ms Reeves has asked those involved in carrying out a Labour review of financial services to work with the mortgage industry to find ways to remove regulatory barriers and help trigger a broader cultural shift.

Richard Donnell, head of insight at Zoopla, said it is a “good idea”, but the challenge will be ensuring rates are as competitive as shorter-term deals, otherwise people won’t be willing to take them out.

The main advantage, he says, would be for first-time buyers. “Today, the cost of a mortgage and renting is the same, even at 4.5% mortgage rates, but new borrowers are being stress-tested as to whether they can afford 8% to 9%,” he says.

Share This

Copy Link to Clipboard