The last twelve months have been a real white knuckle ride for mortgage holders in the UK, many of whom have faced huge levels of stress and financial pain as interest rates have risen. Monthly costs have soared for thousands up and down the land and even if you are one of the more fortunate mortgage holders with a fixed-rate deal that ends way off down the line, unless mortgage rates fall significantly, increased costs feel almost inevitable at some stage.
Thankfully there are signs that mortgage rates are falling slowly, despite the Bank of Englands latest rise, with a number of lenders recently cutting two and five year fixed rates products by around 0.5 to 0.75 percentage points. Industry analysts feel that many other lenders will follow suit and mortgage rates will continue to fall.
It may come as a surprise to see lenders cutting some of their fixed-rate deals off the back of the 14th consecutive increase by the central bank, but inflation has been falling in the UK, which is giving banks and building societies more confidence to lend money to borrowers at a cheaper price.
Here at The Financial Planning Group we monitor rates daily and can switch our clients to lower rates if a mortgage offer has been issued but not gone live. We also work with our clients on the best medium-to-long-term strategy when a fixed rate deal is coming to an end to provide flexibility and freedom to renegotiate when the time is right.
If you or a friend or family member has a mortgage or remortgage situation on the horizon, and would like to talk though your options, please contact Steve Padgham via e-mail at Steve.Padgham@fpgonline.co.uk or by calling 020 8614 4782.