Amy Kadir, Mortgage Broker, St Albans - Better news on mortgage deals 

Friday 15 September, 2023

After fourteen consecutive rate rises the base rate was left at 5.25% in September 2023 and this could be positive news for anyone looking to remortgage or purchase their first home.

Why was the base rate held at 5.25%? 

The Bank of England left the base rate unchanged because the day before the vote inflation unexpectedly fell by more than was expected. However, the Bank’s monetary policy committee (MPC) still only narrowly avoided raising base rates as the vote was 5-4 in favour of keeping rates at 5.25%.  Most people expected base rates to go up this month, but the vote means it is more likely now that mortgage rates may have peaked.  However, the Bank of England Governor, Andrew Bailey made it clear that if inflation increased again the Bank of England would consider raising base rates again.  

Cost of fixed rate mortgage deals fall

According to MoneySavingExpert the cost of mortgage deals has fallen since July, and we are now seeing some five- and ten-year mortgage fixed rate deals back down below 5%.  This has accelerated with the better-than-expected inflation data published in mid-September.

Amy Kadir, mortgage broker, St Albans, Hertfordshire said:

 ‘The mortgage market is looking more positive as fixed rate mortgage deals begin to fall.  Some lenders have reduced their rates which is really helping our customers.  Many customers who are now remortgaging are coming off two- or three-year fixed rate deals and aren’t used to paying anything like the current mortgage rates, so it’s a real shock to be faced with much higher monthly payments. We work with customers to try and find a solution to higher mortgage payments.  Before we recommend a product, we look at our customer’s incomings and outgoings.  If a customer has savings, it might be worth paying down some of their mortgage to reduce the monthly payments or look at spreading the mortgage payments over a longer time period.  We can also discuss what type of product is best to take out.  As some market forecasters think mortgage rates may have peaked some customers will prefer to take out a tracker mortgage now, so their payments track the base rate of the Bank of England.  If the base rate has peaked and it falls from here, they can track the base rate down and fix their mortgage in a few months or next year.  However, no one has a crystal ball, and it is impossible to know what will happen from here. As everyone has different personal circumstances our mortgage brokers in St Albans and Lichfield work hard to provide individual mortgage solutions.’

Amy Kadir, mortgage broker, St Albans, Hertfordshire continued:

‘Many first-time buyers also choose to use a local Lonsdale Mortgages broker to process their application and provide mortgage advice as it saves them time.  Our mortgage team will help them complete their application form, we will liaise with the mortgage lender and our customer’s solicitor.  For anyone who isn’t sure what type of mortgage product is suitable we can explain your choices, so you understand what is available.  Choosing a mortgage shouldn’t be complicated, and using a mortgage broker to assist you will help at a point in time when you are buying your first home and have many other decisions to make.

In Summary..
Call our mortgage broking team on 01727 845500 or complete our booking consultation for local mortgage advice.

Our Lonsdale Mortgages broking teams in Lichfield and St Albans offer you personalised local mortgage advice and protection cover.  

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up the mortgage repayments.  The information contained in within this article is for guidance only and does not constitute advice which should be sought before taking any action or inaction. The Financial Conduct Authority do not regulate some forms of buy to let mortgages.

 

 

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