Base Rate Changes
The Bank of England will be reviewing base rate tomorrow (1st Feb 2023) with base rate currently at 3.5%.
800,000 Fixed rate mortgages ending in 2023
According to statistics from the ONS, 800,000 fixed rate mortgages are ending in 2023 meaning that many borrowers face a big increase in their mortgage payments. The value in speaking to an adviser is even more prevalent this year as navigating the ever changing mortgage products is becoming even more difficult.
Mortgage Rates begin to decrease
Despite the increase in the Bank of England base rate last week, lenders have begun reducing rates with certain products reducing by up to 0.40%. This is a welcome change to the weekly increases we have seen in the market since July and hopefully a trend that continues across the board. Yesterday, Wednesday 9th November, Barclays, HSBC, Virgin and Coventry all confirmed reductions in their mortgage rates whilst Principality and Leeds have followed suit today.
Bank of England Base rate rises to 3%
Following todays Monetary Policy Committee, the Bank of England base rate has been increased by 0.75%. The new rate of 3% will help to combat inflation, bringing it down to a more manageable level and settling the mortgage market in what will hopefully be ‘short term pain’.
New Prime Minister immediately improves mortgage market
Rishi Sunak was confirmed as the new UK Prime Minister yesterday (25th October) and the mortgage industry has reacted positively to the news. Lenders have begun to reduce rates as the appointment of a former chancellor seems to have put the economic future in safer hands. Industry experts predict that Sunak’s ‘safe pair of hands’ will help the mortgage market navigate the last few months upheaval and instability and provide a pathway to a stable and sustainable future.
Mortgage rates expected to drop as a result of mini budget U turn
The Centre for Economics and Business Research (CEBR) has revised it’s expectations for base rate following the chancellor’s U turn on the mini budget. Previous estimations had base rate reaching 6% but the revised figures now place a peak at closer to 5% for 2023. This is welcome news after a tumultuous few weeks in the mortgage industry and hopefully means mortgage rates will not continue to increase as they have through October.
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