MORTGAGE lenders are likely to increase their rates further following the recent Bank of England announcement, according to a leading financial services provider.
Over the past five to six weeks, rates have increased by about 0.75 percentage points to approach an average fixed deal of over 5.5%.
And, experts at Inspired Financial Services say they could be about to increase again.
Mortgage specialist Natalie Leeman from Inspired Financial Services, said: “We believe more
lenders will increase rates or withdraw new business rates within the next two to three weeks. This may cause people to put a hold on viewings and moving home.
“However, It’s worth keeping in mind that a professional mortgage adviser can continue to review available deals should a lower rate become available between submission and before exchange. There is a lot of doom and gloom around at the moment but the reality is there are still deals out there, and there is activity in the market.”
Mortgage specialist Chris Parkin added: “Following last year’s mini budget in September 2022, we saw a lot of lenders withdraw their mortgage deals and increase rates dramatically over a short period of time. Positively, we saw these rates recover by the end of 2022 so we hope that this happens again following a similar lender situation. The prediction of the Bank of England’s base rate hitting 5.5% is alarming; however, we are hopeful that the coming inflation figures are better than expected and that this will help the situation overall.
With the current tumultuous nature of the market in mind, Inspired Financial Services say there are five tips they’d offer to house-movers.
These tips are to:
1. Not sit and wait as standard variable rates offered by mortgage lenders are extremely high right now;
2. Talk to a professional mortgage adviser as early as possible;
3. Be mindful that you can review and secure a rate up to 6 months in advance for remortgages and purchases. Your mortgage adviser can continue to review the deals offered;
4. Explore all options with your mortgage adviser to decide what is most suitable for you
5. Ensure you understand your affordability before viewing properties.
