Financial Advice
Should I increase my mortgage term?
The article addresses the options available to homeowners when remortgaging regarding the mortgage term length.
Copyright © 2022 Clarity Wealth Management LLP , All rights reserved. .
UK Lenders step up Mortgage price battle as Inflation slows.
Mortgage Interest rates are decreasing.
Anyone comparing mortgages may be pleased to see the arrival of more sub-5% options becoming available in November 2023 as many UK Lenders step up the Mortgage price battle as Inflation slows .
British lenders have accelerated price cuts on mortgages as competition intensifies, inflation slows and markets increase bets on future Bank of England (BoE) interest rate cuts.
Average rates on fixed-rate mortgage products have fallen by more than 0.5 percentage points since peaking in July, Moneyfacts data shows, even before the BoE starts to reduce the benchmark rate that underpins borrowing costs.
The latest inflation data on in Mid-November 2023 (taken on 16h November 2023) showed price rises in Britain fell faster than expected in October, plunging to 4.6% from 6.7% the prior month, leading to further investor prediction on Bank of England rate cuts next year.
We are already seeing many UK Lenders step up the Mortgage price battle as Inflation slows meaning in real terms, interest rates are starting to reduce as inflation has slowed.
What does this mean for you in real mortgages?
We are seeing more and more lenders bringing rates to the market at under 5%.
The latest analysis from Moneyfactscompare.co.uk on 16/11/23 reveals that within the residential mortgage sector this week: Halifax, HSBC, Yorkshire Building Society, Virgin Money, Bank of Ireland UK and Bank of Ireland UK for Intermediaries revealed new sub-5% two-year fixed mortgages.
This has changed considerably as there was no lenders offering a two-year fixed mortgage under 5% at the start of October 2023.
Overall, there are now approximately 27 lenders offering a sub-5% fixed mortgage compared to 13 at the start of October. *
It is particularly encouraging to see cheaper mortgages on the market for homeowners particularly the return of two-year fixed mortgages priced below 5%.
This is great news for those who do not want to commit to a longer-term fixed deal. Several large lenders have slashed fixed mortgage rates and there is much anticipation for more cuts in the coming weeks.
What does the future look like for mortgages?
As we head closer to the year-end, lenders will be weighing up both the current competition and their own lending targets, so it’s a promising market for consumers looking for a new deal.
*Data taken from Mortgagestrategy.co.uk on 16th November 2023.
If you would like some help understanding your mortgage options with one of our understanding and supportive advisers please get in touch with us on 0800 2335599 or email samibickford@claritywm.co.uk
If you are considering remortgaging and are interested to know more about how this works, read our blog on remortgaging here https://mortgageswithclarity.co.uk/what-is-refinancing/
Your home may be repossessed if you do not keep up with the repayments on your mortgage.
Insight
Update Article & News.
Financial Advice
The Importance of Private Medical Insurance
This article addresses the importance of Private Medical Insurance.
Clarity Wealth Management LLP are regulated by the Financial Conduct Authority. No: 575252
Registered in England and Wales as a limited liability partnership. No: 0C371189
Offices
Newsletter
Signup our newsletter to get free update, promotion, news & insight about Finance.