Two reasons to be positive about the current UK mortgage market
The Bank of England today opted to hold the base interest rate at a record low 0.1%. This means the cost of mortgage borrowing will remain lower for longer. Here are two more reasons to be positive about the current UK mortgage market.
There is plenty of choice
Competition between lenders is intensifying as confidence grows in the UK economy and housing market. This means more choice for those looking to borrow. Last month, the UK’s lowest ever five-year fixed rate mortgage launched, with an interest rate under one per cent; this is the lowest we’ve ever seen for this kind of mortgage.
The market is becoming easier to access
While the market remains busy, with 81,300 mortgages approved in June, for many it is becoming easier and quicker to secure a mortgage as the stamp duty holiday winds down. Lenders have more manageable pipelines than they did during the earlier phases of the pandemic and demand has eased.
However we do anticipate the Bank of England will come under increasing pressure to raise the base rate from its current emergency level as inflation inches up.
While this is unlikely to happen imminently, it is worth exploring whether you can take advantage of these market factors and lock in a record low rate, if you are considering your mortgage options in the near-term.
If you are seeking a new mortgage, planning to remortgage, or would like to have an informal chat about your finances, please don't hesitate to get in touch with us.