Mortgage rates UK
What can I do about my mortgage in the current climate & how does this impact me?
In this two part article we help you navigate through the current market, what’s changed, and tell you what you need to know
What can I do about my mortgage in the current climate?
The simple answer is to get good mortgage advice from a good mortgage broker. It may seem too simple, but to get the most out of the market you need someone whose job it is to understand the market, who knows the lenders and knows the lenders products. We work from a comprehensive panel which is representative of the whole of the market. Some lenders also only offer their products through Mortgage Advisers and won't lend to you directly, so you could be missing out. A comparison site, your uncle or the guy down the pub can't help you navigate this.
How does this impact me?
Let's be honest, the world is a little crazy right now. With everything that's going on it's hard to know what might happen next or to truly understand how and why it affects you personally. As a Mortgage Broker in Sheffield giving Mortgage Advice to our clients in Sheffield and across the UK, we’ll have a thorough understanding of the market and the economic conditions and thus can give you the best advice for you.
No doubt you'll have heard a lot in the news about mortgage rates in the UK and lenders pulling their rates, withdrawing products and of course interest rate increases, but what does all this mean and is it actually the case?
Mortgages are primarily driven by "swap rates" which are what lenders pay to financial institutions to acquire fixed funding for a set period of time. The cost of these swap rates thus affect the way mortgage lenders price their products. Swap rates are based on what the markets 'think' interest rates will be. The 'Mini budget' panicked the markets. If swap rates rise too rapidly, then lenders may have to pause lending (pull rates) or withdraw products until pricing stabilises. Whilst mortgage rates were increasing from mid to the end of October that trend has now stopped. Swap rates have dropped approximately 1.5% since mid October and now mortgage lending rates are following suit.
How can we help?
If you're looking at buying a new home or remortgaging your current home, then get in touch with us to find out what those current mortgage rates in the UK are, and what’s available to you. You can also use our mortgage search tool via the ‘Search Mortgages’ button on our services page to get an idea of what mortgages are available, and when you’re ready to discuss further, book an appointment via our contact page.
Click here to read Part 2