Is now the right time to get a mortgage?
With the Bank of England Base Rate currently resting at a 15 year high of 5.25% many people are asking whether it is now the right time to get a mortgage. Or should they hold off in case the mortgage market improves. Adam Nanson, Managing Director at Your Mortgage Expert takes an overview of the mortgage market right now:
What is happening with mortgage rates?
“Mortgage market predictions have been difficult over the last six months as the market has been very volatile. We think we know what the trends are going to be and then things change with a new prime minister or inflation not lowering as much as expected.
“The Bank of England has now increased the base rate 14 times in a row. Fixed rate mortgages, for two, five and 10-year terms are around 3% higher on average compared to December 2021 and the average Standard Variable Rate (SVR) has risen consecutively over the same period according to the financial information service Moneyfacts*.
So, is now the right time to get a mortgage?
“Despite the rates being higher than last year, it’s not all doom and gloom. The market seems to have settled and so lenders may feel they can become more competitive with their rates, in order to attract the buyers still wanting to move. In fact, over the last few weeks we have seen many lenders lowering their rates across both Buy to Let and residential purchases**.
“In addition, house prices have dipped slightly which makes a property purchase a more attractive prospect for those looking to invest in this sector***. And, it is an ideal time for First Time Buyers to get a foot on the property ladder.
“We can start researching the market and help you lock in a rate now. Then, if rates go up over the next six months you are protected. And, if they go down, we have time to look for a new deal.”
To speak to a member of the mortgage advice team about your mortgage ring Your Mortgage Expert now on 01722 322683. Or visit www.your-mortgage-expert.co.uk and complete a contact us form and let us know when we can call you back.
The information contained within this article was correct at the time of publication. It is intended for information only and should not be used as a basis for purchasing any products. We cannot be held responsible for something that was correct at the time but subsequently changes or goes out of date. For further information, contact Your Mortgage Expert on 01722 322683.