Positive signs for borrowers

The Bank of England base rates surprised many when they did not rise on 21st September. Instead, the base rate remained steady for the first time after 14 consecutive increases, at 5.25%.

Whilst this decision has influenced mortgage rates since lenders are not slashing mortgage prices. Rather, reports indicate that a few lenders have been reducing their mortgage rates.

Nationwide and NatWest were among the first, reducing rates by up to 0.31% on five-year, fixed-rate mortgages. TSB and Virgin Money are also making cuts. So, if you’re considering applying for a new mortgage, this is worth keeping in mind.

What’s more, according to the Office of National Statistics, inflation decreased in September by .01% compared to August, rather than rising as many expected. This is good news, as more affordable everyday costs will help to free up your finances.

The largest contributor to inflation is typically food and non-alcoholic beverages, such as milk, cheese, fish and vegetables. The Office of National Statistics advised inflation for this sector was lower in August, with rising petrol prices off-setting the overall fall of inflation.

So, whilst fixed mortgage rates remain higher than they were a few years ago, they are beginning to fall.

If you’d like advice on what the best mortgage rates for your circumstances are, we'd be happy to introduce you to our independent financial advisors. If you’re considering selling your property, please contact your nearest Mackenzie Smith branch for an up-to-date valuation and advice on local market conditions.

Your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it.

Sources:

https://www.theguardian.com/money/2023/sep/14/uk-mortgage-war-underway-as-lender-offers-499-fixed-rate

https://www.msn.com/en-gb/money/other/relief-for-homeowners-and-buyers-as-lenders-cut-mortgage-rates/ar-AA1h62AX

https://www.msn.com/en-gb/money/other/relief-for-homeowners-and-buyers-as-lenders-cut-mortgage-rates/ar-AA1h62AX

https://www.independent.co.uk/news/uk/mortgage-rates-go-down-interest-news-uk-b2416507.html

https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/august2023#notable-movements-in-prices