The Bank of England raised interest rates from 1.25 to 1.75 per cent this month. The largest single increase since 1995, as it tries to get a grip on inflation. The rise, the sixth in as many meetings, will hit the minority of homeowners on variable-rate mortgages. As well as borrowers coming to the end of a fixed rate. Who will find the range of options available to them to be significantly more expensive.
House prices continue to rise. Although Halifax noted that monthly prices fell for the first month in a year in July. Prices fell 0.1 per cent month-on-month, although the annual rate of growth was still 11.8 per cent. With house prices more than £30,000 higher than at the same time last year. The slowdown in house price growth has been expected for a while, given the rising cost of living and interest rates. However, market commentators are not forecasting a price crash as many would-be buyers are still sitting on cash built up during lockdown. And remain keen to buy spacious homes in more remote locations given that they can now work at least some of the time from home.
AWS Private Finance interest rates
As rates edge upwards, albeit from low levels, and more money needs to be found to buy that dream home. Borrowers are finding that mortgages aren’t as affordable as they have been. This means advice from a whole-of-market broker such as AWS Private Finance is more important than ever. We scour the market on your behalf, finding the right deal for your circumstances. Whether you are taking out a new mortgage or refinancing.
With mortgage rates continuing to rise, there is added pressure to lock into a deal now before they go any higher. Rates can be booked up to six months before you need them. So it is worth planning ahead. We have particular experience in arranging large loans for contractors. The self-employed and professionals such as doctors, accountants and lawyers with lenders often prepared to offer higher loan-to-income multiples than for non-professionals. Please get in touch for more information.
