It has been an extremely busy time here at Coreco Towers and ’22 has really got into gear quickly judging by the enquiries that have flooded in over the last few weeks.
It shows that there is still such a large amount of demand out there from buyers and those looking to remortgage, as they want what we are best at; good, down-to-earth advice.
Sometimes it is easy to forget that taking out a mortgage is the biggest loan anyone, (well most people), are ever going to take out in their life, so getting it right, understanding the small print and having someone in your corner with you is essential.
Especially now as we are again talking about the prospect of another interest rate rise from the Bank of England, which could possibly increase the Bank Base Rate from 0.25% to 0.5% in the coming days.
The difficulty is that the Bank of England are walking off the hilt onto the blade of a particularly sharp double-edged sword as they try to balance the economy and a cost-of-living crisis, with the evils of inflation.
It seems another small rise is likely, though this will not have too much effect on many mortgage borrowers who have long since run to the sanctuary of fixed rates. If you’re curious how base rate rises affect your mortgage take a look at our helpful guide.
That said, it will affect future potential borrowers and is yet another slap across the face to those already facing higher energy costs, food prices and an ill-judged refusal by Government to hold back on a National Insurance rise.
The problem is that another small increase is unlikely to temper inflationary pressures without a major change, and whilst rates do need to get back to some semblance of normality sooner rather than later, the public are not ready for this any time soon.
The good news is that competitive pressure amongst lenders remains high and so hopefully changes in pricing will not be too high, but much depends on how the money markets react.
What we do know is that if this happens there will be another rush of calls and questions, so it is best for all those looking at properties now to understand what the implications are for them and whether they can lock into a rate before they change.
The phrase “get ‘em whilst they are hot” comes to mind.
Have a great week.
Best Mortgage Rates
In terms of mortgage rates, for standard residential mortgages, borrowers can obtain 2-year fixes at 1.29% (3.30% APRC) and 5-year fixes from 1.41%, (2.80% APRC) whilst variable tracker rates are around from 0.99%, (3.20% APRC).
Those looking at Buy-To-Let can now obtain products from 0.99%, (4.30% APRC) for 2-year fixed or 5-year fixes are available from 1.49% (3.70% APRC).