Mortgage holders have been on a rollercoaster these past 12 months, with rising rates changing the state of the mortgage market. Thankfully, clear-headed thinking is the antidote to market volatility.
Monthly movements
After a decade of ultra-low interest rates, the return to rates around 5% has been a shock to the system for many mortgage holders. Mortgage rates have settled somewhat since the uncertainty caused by the mini-Budget, but they still remain higher than before September 2022.
The result is higher mortgage repayments for many mortgage holders, putting a further strain on household budgets.
To fix or not to fix?
In an environment of rising rates, the certainty offered by fixed-rate deals can seem appealing. Having a fixed-rate deal offers a guaranteed interest rate, which means monthly payments will be the same from the start to the end of your term. The ability to plan your budget is a big plus, but your monthly payments won’t fall if interest rates do.
Here to help – whatever the interest
With inflation remaining stubbornly high, we’ll continue to monitor developments in Bank Rate and the mortgage market. Wherever your property journey is heading, we’ll help you navigate the market.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Contact us today at 01733 367800 to discuss how we can assist you with your mortgage needs!