For the first time since December 2021, and after 14 consecutive Base Rate increases, rates have plateaued thanks to a better-than-expected inflation rate decrease on the 20th of September. At last, inflation is slowing and heading in the right direction. But what does this and a plateauing Base Rate mean for mortgages?
Our Managing Director for Mortgages, Thomas Jackson, explains.
“With Base Rate holding at 5.25%, it’s likely we’ll see some lenders reduce their rates in due course, especially as some have already begun to drop some fixed-rate mortgage deals below 5%. They’re feeling more confident, trying to be as competitive as possible and entering rate wars. By the end of the year, I wouldn’t be surprised if we saw slightly lower rates being offered.
“If you’re currently looking to buy a house or need to remortgage, speak to your broker or lender as soon as possible to tie into the best deal for you.
“For remortgagers, you can tie into a new deal six months in advance of your current term coming to an end and up to six months before with your current lender, under the new Mortgage Charter. If your lender offers a cheaper rate, you can swap to this cheaper rate up to two weeks before your new term begins, again under the new Mortgage Charter.
“It’s a buyers’ market, so ensure you’re making the most of it with the support of an expert.”
Speak to our team today about buying your first home, buying your next home, or remortgaging.
If you’d like to understand what your mortgage cost could look like in the current market, use our handy mortgage calculator below.
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