Recent Changes to Mortgage Rates

The Bank of England have recently raised their interest rates from 5% to 5.35%. This happened on 03/08/23 and was the 14th consecutive raise since December 2021. This means that the current Bank rate is now the highest it has been since 2008. Now for how this affects you…

If you are already set up on a fixed-rate mortgage then this is unlikely to affect you at all but if you are looking to find a mortgage deal that suits you, this is how some of the main mortgage lenders have responded to the rise in interest rates.

Nationwide Building Society, who are the UK’s second biggest mortgage lender, has responded by cutting interest rates on fixed rate deals by up to 0.4% points which is the second cut in 2 weeks. This includes five-year fixed rate for remortgage customers at 5.49% with a £999 fee. This has been cut by a further 0.15%. This is while average five-year fixed rate deals have fallen by 0.13% and now stand at 5.66%. HSBC have cut fixed rates on selected residential and but-to-let mortgages by up to by up to 0.3% including first-time-buyer deals up to 90% LTV. Virgin Money have also cut costs of fixed mortgages for new and existing customers by 0.3%. Santander cut costs of fixed-rate mortgage deals by up to 0.2% an they have cut fixed rate prices by 0.29% for new customers. Barclays have also cut the cost of fixed rate borrowing on selected loan deals.

While this information is good to know, it is entirely subjective as to which deal is best in your circumstances. Our advice would be to look around and gage which deal fits you and your circumstances best. While the changes in interest rates from the Bank of England could affect your mortgage, it could be beneficial in regards to existing savings and may benefit those currently looking for a mortgage.

The contents of this post do not constitute legal advice and are provided for general information purposes only.