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Tag: Interest Rates

What’s happening with mortgage and interest rates?

Posted on by Sophie Winter

If you’re considering buying a home, you may be curious about the current mortgage rates in the UK.

What’s the latest on mortgage and interest rates?

There’s been a lot of attention on the Bank of England’s (BoE) Base Rate increases and their potential effect on mortgage rates. The BoE meets roughly every six weeks to decide whether the Base Rate should rise, fall, or remain unchanged.

In early August, the Base Rate was reduced to 5%, the first cut in over four years. This was after being held steady at 5.25% since August 2023. This followed inflation reaching the Bank of England’s 2% target in May for the first time since 2021, and remaining at that level in June.

When could mortgage rates start to decline?

Another Base Rate cut is anticipated by the end of the year, with projections suggesting it could drop to around 3.25% by December 2028, though this will depend on broader economic conditions.

However, predicting significant drops in mortgage rates remains challenging due to various influencing factors. These include inflation trends, declining swap rates, and the absence of unexpected economic shocks.

How much can you borrow with a mortgage?

The amount you can borrow with a mortgage is determined by an affordability assessment, and your interest rate depends on the size of your deposit, referred to as loan-to-value (LTV).

LTV is expressed as a percentage, representing the size of the mortgage relative to the value of the home you intend to buy. The larger your deposit, the lower the LTV, and vice versa.

To get an estimate of how much you could borrow, you can use a Mortgage Calculator. For a more tailored result, applying for a Mortgage in Principle can bring you closer to securing a mortgage offer.

Want to speak to a mortgage adviser?

CR Real Estate work in partnership with The Residential Mortgage Hub to offer trusted advice that’s tailored to your needs.

Book your FREE appointment with their mortgage and protection advisors online. They have access to over 12,000 products from 90+ lenders on the mortgage market. Their team will handle the whole of the application process for you and deal with any challenges that may arise.

Please note: CR Real Estate is not authorised to provide financial advice. The information and opinions in this article is not intended as financial advice and should not be relied upon for financial decisions. Please consult a regulated mortgage adviser for guidance.

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A homebuyer’s guide to changing mortgage rates

Posted on by Sophie Winter

Mortgage interest rates are falling, which is encouraging, but recent fluctuations can be a bit unsettling. That’s why we’ve made this guide to help you understand how you can insulate against changing interest rates.

You might be able to move home without altering your mortgage.

If you want to move and take your existing mortgage rate, which is lower than the current rates, porting your mortgage can be a great option. This allows you to transfer your current mortgage to your new home. Additionally, you might be able to borrow extra funds, but keep in mind that terms vary between mortgage providers.

Fix your interest rate 

Variable interest rates are typically higher than fixed rates, and many people prefer the stability and predictability of fixed-rate mortgages. However, if variable rates drop below current fixed rates, you save money. This usually occurs when interest rates are very low. If you intend to keep your property for a short time, a variable-rate mortgage might be suitable. It’s important to remember that there are many types of mortgages to consider and a mortgage broker such as The Residential Mortgage Hub can help you understand more about your options.

Explore different mortgage types 

With thousands of mortgage products available, it’s important to find the best deal for you. An offset mortgage lets you use your savings to reduce your mortgage balance, resulting in lower interest payments. Guarantor mortgages and 5% deposit mortgages can help you in making your first or next property purchase, while interest-only mortgages are often beneficial for buy-to-let investors.

Talk to a mortgage adviser    

A larger deposit also results in paying less interest. The expertise and guidance of a good mortgage adviser can boost your confidence when applying for a mortgage. A quick discussion with them can save you both time and money!

Higher mortgage rates can lead to a better deal  

As mortgage rates decline, property prices often rise due to increased demand. Consequently, the contrast between higher mortgage rates and lower purchase prices may not necessarily result in reduced mortgage repayments while waiting for interest rates to drop. In a stable market, fluctuations in mortgage rates are typically nothing to fret about and can even present opportunities for better deals. Additionally, selecting the right property significantly influences securing your future as you negotiate the offer price. A market characterised by a balanced pace without intense competition also creates a more favourable environment for buying.

How can we help you?

Moving to your perfect home is always easier with the right help. Contact our team of industry experts today for help and guidance, simply contact our office on 01634 570057.

Important information

Your home may be repossessed if you do not keep up repayments on your mortgage.

There may be a fee for mortgage advice. The actual amount will depend upon your circumstances. The fee is up to 1% but a typical fee is £598.

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