Last week we saw the Bank of England increases its base lending rate by 0.5% to 3.5% – it was the ninth time in a year that the Bank had increased rates after it first lifted them to 0.25% from 0.1% in December 2021.
However, on the same day, some mortgage lenders reduced fixed rate home loans, which many industry analysts saw as a correction from an over reaction from lenders after September’s failed ‘mini budget’.
For example, five year fixed rates were around 4% prior to the Truss-Kwerteng bombshell – they spiked up to around 5.5% within a few days, however, despite the base lending rate having risen further in that time, a five year deal is now 4.49%. The big question is will fixed rates fall further?
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.
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