Although we have seen consistent interest rate rises over the past months, as the Bank of England looks to tackle rising inflation, those who predicted a profound dip in property prices with spiralling mortgage rates, or a similar scenario to the 2008 financial crisis, may need to think again – the squeeze on people renewing or trying to get new mortgages has certainly eased slightly according to new data.
There was an ‘institutional crash’ back in 2008, with no monetary flow in the market and banks withdrawing funding, however, the current situation with mortgage lenders appears to be a reaction to the infamous mini-budget, which has had a direct impact on the market – it appears to be a sharp shock rather than an ongoing crisis.
Some argue that as long as interest rates plateau at around 5% to 6% interest rates, the mortgage market should stabilise and we have seen this week that the average five-year fixed mortgage has fallen below 6% for the first time in almost two months, with many industry analysts forecasting that rates will fall back to below 4% in the New Year.
Although borrowing has become more expensive than in recent years, finding attractive deals by using a skilled independent mortgage broker can often help borrowers find a deal that’s right for them. Here at the Financial Planning Group, we are able to secure mortgage deals for our clients up to 8 months in advance of their current deal ending, with no commitment to take it if circumstances change, or if rates improve, during that time. Being proactive right now can provide real peace of mind going forwards.
If you or a friend or family member has a mortgage or remortgage situation on the horizon, or to talk though your options, please contact Steve Padgham via e-mail at Steve.Padgham@fpgonline.co.uk or by calling 020 8614 4782.