All eyes are on the economy, finances are at the forefront of everyone’s mind and the word ‘mortgage’ might fill you with dread based on the news, but we’re here to let you know that it’s not all doom and gloom.
Whilst the Bank of England increasing the base rate by 0.75% to 3% may have caused an air of nervousness – our mortgage broker Charlotte shares some positive thoughts.
The bank of England base rate has virtually no effect on fixed-rate mortgages. These are dictated by Swap Rates. Before the Liz Truss Mini-budget, the Swap Rate was 4.5% and post-Liz Truss this peaked at 6%. This was the point that lenders substantially hiked their fixed-rate deals. The good news is the Swap Rate now stands at 4.38%, which is slightly lower than pre-Liz Truss and this means that fixed-rate mortgages should come down from the current high levels and one would hope by a noticeable amount.
If you have a mortgage deal that is approaching the end, you may be feeling a little concerned, but did you know you can apply to change your mortgage deal 6 months before the current deal expires? Some lenders will also give you the opportunity to switch to a new deal early without incurring an early payment charge.
Whether it’s residential or Buy to Let, speak to someone who’s in the know!
Contact us today on 01243 861344 to book your free initial consultation with Charlotte and she’ll ensure you get the best deal to suit your individual needs.