Hello, future homeowners, first-time buyers, and those considering a move to a new place! We’ve got some fantastic news that could make your path to homeownership smoother and more affordable. Recent developments in the UK mortgage market have created exciting opportunities.
The Bank of England Base Rate Holds Steady
First things first, the Bank of England decided not to increase its base rate for the first time in 14 months! That’s a big deal because it affects many interest rates, including those on mortgages. When the base rate stays low, it usually means good news for us looking for a mortgage.
Lower Inflation Rates
But that’s not all—UK inflation went down last month. Inflation is like the price tag on everything we buy, and when it’s lower, our money can buy more. This is terrific news for your wallet!
House Prices Are on the Dip
Now, let’s talk about house prices. In some areas, they’re actually dropping a bit. Falling house prices might not sound amazing, but it’s a good thing if you’re thinking about buying. Lower prices mean you might be able to afford your dream home sooner than you thought!
HSBC Has Exciting Changes
HSBC, a big player in the mortgage world, has made some moves too. They’ve announced changes to their mortgage products that could benefit you. Here’s the scoop:
• For First-Time Buyers and Home Movers: HSBC is reducing rates on two, three, and five-year mortgages across different loan-to-value (LTV) ratios up to 90%. That means more affordable options for you!
• Remortgages and Existing Customers: If you’re looking to refinance or borrow more, you’ll also find lower rates on two, three, and five-year mortgages up to 90% LTV.
• Buy-to-Let Mortgages: HSBC is making buy-to-let mortgages more attractive too, with rate reductions across various LTVs and fee options.
Halifax Joins the Party
Not to be outdone, Halifax is also making moves. They’ve announced further reductions to their fixed-rate mortgages, including some fantastic options:
• Five-Year Fixed Rates: You can now get a five-year fixed rate at just 4.85% up to 75% LTV with a £999 fee or 4.96% fee-free. That’s great news for those looking for stability in their mortgage payments. 4% for 5 year fixed not seen for at least a year!
• Two-Year Fixed Rates: Starting from 5.32% at 60% LTV with a £999 fee, these two-year fixed rates offer flexibility and affordability.
• Low Deposit Options: Halifax is helping first-time buyers with a 5% deposit by offering a rate of 5.72%. It’s a fantastic deal for those who are ready to take the plunge into homeownership!
What Should You Do Next?
With all these exciting changes, here’s what you should consider:
1. Learn About Mortgages: Get familiar with different mortgage types and how they work. Knowledge is your best friend!
2. Talk to a Me!: Don’t hesitate to reach out to a mortgage broker. Speak to me – always open to chat about your circumstances I have over 90 lenders to choose from – I am available after 5pm if needed for a talk if you are working – but not too late, as the wife to be does like me to be at the table for tea! I can help you understand your options and find the best deal.
3. Start Budgeting: Whether you’re a first-time buyer or a seasoned homeowner, having a budget in place is essential.
4. Stay Informed: Keep an eye on mortgage rates and house prices in your desired area. Being informed helps you make the best decisions.
In conclusion, it’s an exciting time for those looking to buy a home or make a move. With the Bank of England base rate steady for the time being, lower inflation, and some house prices dropping, mortgage rates are heading in the right direction—down! It’s a great time to explore your homeownership dreams. So, reach out to the experts, set your budget, and start your journey to owning that dream home. Happy house hunting!
| Mike Bowcock Mortgage, Protection and GI Adviser Mortgage Advice Bureau M 07737409934 E Mike.Bowcock@mab.org.uk |
