Surprise, surprise! UK mortgage rates increase once again, leaving homeowners and first-time buyers across the nation left wondering where to turn.
Unless you have been living under a rock over the last few months, you will likely be aware that mortgage rates have been steadily rising on a consistent basis since May. Recently, the market witnessed another consecutive hike, as average rates skyrocketed above 6% across the board. If you’re currently looking to remortgage your home, you may be feeling somewhat overwhelmed as to how to find a competitive, affordable deal. But don’t worry, we can help with that. In today’s blog post, we’ll be taking a look at what the current market looks like, and how The Mortgage Brokerage can help. So, let’s get stuck into it.
What is the state of play in the UK mortgage market?
As aforementioned, mortgage rates have been on an upward trend over the last two months, as lenders seek to price in forecasted Bank of England base-rate hikes. It has come as little surprise, then, that as July arrived the market has witnessed a further rise in average rates.
At the beginning of this week, the average rate for a five-year fixed deal rose to 6.01%. In the meantime, the average two-year fixed deal has skyrocketed to 6.47%, according to Moneyfacts.
What does this mean for homeowners?
Despite the chaos of the recent mortgage rates increase, the UK housing market has remained resilient to the market turmoil. This is partly due to the fact that a large proportion of homeowners are yet to be impacted by rising rates because they are currently on fixed-rate mortgages.
However, this will inevitably change.
Whilst 85% of mortgage payers in the UK are currently on fixed-rate deals, around 20% of these homeowners will need to refinance before the end of 2023, and the same percentage again will be required to remortgage before the end of 2024, according to Nationwide’s chief economist, Robert Gardner.
Thus, homeowners remortgaging in the coming months may struggle to find an affordable deal, and could witness their payments rise dramatically. As such, many borrowers looking to renew their deals are actually opting – somewhat optimistically – for variable-rate mortgages, in the hope that the Bank of England will begin to ease the base-rate once inflation has subsided.
UK mortgage rates increase: here’s how we can help
How can The Mortgage Brokerage help?
Things might seem dire, but there’s always a light at the end of the tunnel, right? Right!
Here at The Mortgage Brokerage, our experienced, conscientious advisers can be that light. If you need to renew your mortgage, we’re here to help you find the very best possible deal in line with your circumstances and to provide the essential advice that you need when it comes to what course of action to take.
Now, more than ever, we would urge homeowners looking to renew their mortgage to seek professional guidance from industry-savvy advisers such as ourselves. With rates rising left, right and centre, and major providers pulling deals from the proverbial shelves as quickly as you can say “remortgage!”, it’s an incredibly overwhelming time to try and renew your mortgage without professional guidance.
So, don’t feel you need to flounder on your own. Our knowledgeable advisers are here to provide clarity and advice, guiding you towards the best, most financially viable solution when it comes to remortgaging your home. With our whole-of-market viewpoint, we’ll be able to access exclusive, competitive deals on your behalf, and take care of the entire remortgaging process for you, from start to finish.
Feeling overwhelmed about the prospect of remortgaging? We can help. Simply get in touch today.
*DISCLAIMER: Your home may be repossessed if you do not keep up repayments on your mortgage*
