And after? – Forbes Advisor UK

0


The Bank of England’s base rate is at an all-time high of 0.1%. Many commentators expected the Bank to raise it in November, but its reluctance to do so means that all eyes are now firmly fixed on December 16 when the next decision of its monetary policy committee will be announced.

Economists are now suggesting an increase to 0.25% or even 0.5%. Such an increase would not in itself have a major immediate impact, but it would signal a significant change in policy. It would also cause many lenders to increase the rates they charge their mortgage customers.

Rising inflation

The growing prospect of a base rate hike is largely due to rising inflation. Official figures show that the Consumer Price Index (CPI) jumped 4.2% in the 12 months to October 2021. It is now more than double the target of 2% of the Bank of England, set by the government.

And inflation could continue to rise in 2022, according to the Bank’s deputy monetary policy governor, Ben Broadbent. Speaking to Leeds Business School today (December 6), he warned that inflation could “comfortably exceed 5%” by spring, when energy regulator Ofgem is likely to put in place the energy price cap (in April 2022). An increase in the cap would mean higher energy bills for millions of UK homes.

New mortgage offers

However, new mortgage deals have already predicted an increase in interest rates – with the latest inflation report likely to see further increases in the cost of borrowing even before a rate hike takes place.

That said, the outlook has yet to impact a particularly buoyant housing market. The main house price indexes continue to post monthly increases. Whereas, on an annual basis, property values ​​were 10% higher in October 2021 compared to the same month last year, according to the latest data from Nationwide Building Society.

What are the mortgage rates today?

But with mortgage rates changing – often daily – how can you keep up to date? One easy way is to use our mortgage tables, powered by Trussle, a trusted mortgage broker and our mortgage partner.

To find out what offers are available at today’s rates for the type of mortgage you are looking for, you will need to enter your personal criteria in the table below. Here’s what to do:

  • Choose if the mortgage should finance the purchase of a house or if it is a remortgage for an existing property
  • Enter the property value and the mortgage amount you need. This will automatically generate a percentage which is known as a “loan to value”. The lower the value of your loan, the better the available mortgage rates
  • Check the appropriate box if it is a rental or interest-only mortgage (you will need a repayment strategy for these transactions), or if you are looking for a mortgage to finance a shared ownership goods
  • Finally, filter your search by type of mortgage you want, say, a fix or a two or five year tracker. The filter is set to a full 25-year mortgage term, but you can change it if needed.

What else do I need to know?

Mortgage offers that offer the cheapest rates usually come with a fee. You can choose to prepay them or add them to the loan. To factor in the cost of fees, sort your results by “initial period cost” (in the “Sorted by” drop-down list).

Alternatively, you can categorize results by initial rate, lowest fee, or monthly repayment – even by the lender’s “follow-up” rate to which the deal will revert at the end of the term.

While mortgage rates change daily, the cheapest are reserved for larger deposit amounts, typically 60% of the property’s value or more. And in any case, you will need sufficient income and a clean credit history to be accepted for a mortgage.

If you want to see what your monthly mortgage payments might look like in different scenarios as they are overlaid on household bills, our mortgage calculator will do the sums.

While Trussle lists around 12,000 mortgage offers from 90 lenders – which is the vast majority of the market – some offers are sometimes available exclusively through a handful of brokers, so you might not see them. not.

When can I start a remortgage?

Mortgage offers from major lenders tend to last six months (as noted in our Best Lenders for Remortgage), although some lenders cap expiration dates at three months. It’s worth looking for a new mortgage contract so far in advance, as you will be able to lock in a rate you see today – at no cost and without any strings attached.


Share.

About Author

Comments are closed.