Slowing housing market and low mortgage rates

05 Jan Slowing housing market and low mortgage rates

At the end of 2017 we saw the Bank of England increase the base rate by 0.25% and the threat that there were more rises to come. However, uncertainty over Brexit and other factors affecting the economy has caused the housing market to slow, forcing lenders to keep their deals extremely competitive as they race to sweep up the deluge of New Year buyers. Some deals are staying as low as 2.03% for five years with as little as 15% deposit.

In the opening week of the year it is looking like long-term fixed rate mortgages are likely to be popular, especially while the deals are in the 2%-2.25% area. We can also expect to see some extra incentives to make offers look all the more attractive to the client – things like cash-back and free valuations. We’ll be on hand to offer you sound mortgage advice should you need it, to help you avoid the dazzle of the promotions.

Looking at the current market and the offers that are available now seems like a good time to grab a good deal. With uncertainty in the housing market due to the on-going Brexit negotiations, being able to budget with the peace of mind that your mortgage payments won’t fluctuate over next 3-5 years will help you to avoid financial stress – to an extent.

There is a growing sense that rates will rise albeit slightly slower than forecast back in November after the Autumn budget. Normally this would lead to a surge in the house market as people seek to borrow on the cheapest deals, however, with a hesitant market we are seeing bank rates being pinned back. There is no indication of how long this trend will last but as lending slows so will the banks rising of their rates as they try to chase for new business.

So, if you have 15% deposit or equity and are looking to secure your mortgage payments make sure you speak to one of our qualified mortgage advisors to help you discover the true cost of the mortgage.

We also have access to some of the best deals on the market so if you are thinking of moving home or remortgaging make sure you give us a call on 01753 439000 or email a member of our team. You can also follow us on Facebook, Twitter and LinkedIn.