27 Sep Bank of England holds Interest Rate at 5.25% – What it means for your Mortgage
In a recent and critical update, the Bank of England (BoE) has chosen to maintain the base interest rate at a steady 5.25%. This decision follows a remarkable series of 14 consecutive increases, which had driven the Base Rate from a mere 0.1% in November 2021 to its current level.
As leading estate agents in Wentworth and Virginia Water, we cannot stress enough to our clients that keeping up-to-date on market trends is vital when considering your next move, and keeping an eye on mortgage rates can help you to stay prepared for your property journey.
If you’re thinking of moving, renting or buying, and want some home inspiration take some time to browse our properties available in Virginia Water and the surrounding areas. If you have any questions, you can also visit our award-winning website or call us on 01344 843000 and email us.
The influence of interest rates on mortgages is substantial, and this recent development holds encouraging news for both existing homeowners and those eager to enter the market.
WHAT DOES THIS MEAN FOR YOUR MORTGAGE?
If you’re one of the many homeowners with a tracker mortgage, this news should come as a welcome relief. It signifies that your interest rates won’t see an immediate increase, and your monthly repayments should remain stable for the time being.
However, for those contemplating a re-mortgage, the available mortgage rates for new deals are notably higher than they were when you initially secured your current mortgage. To put this into perspective, two-year fixed mortgage rates are averaging at 6.58%, while five-year fixed residential mortgage rates stand at 6.07% (Moneyfacts.co.uk). Acting swiftly to secure a new fixed-rate deal is advisable, especially for those concerned about the possibility of further rate hikes.
If you need advice on what the best mortgage for you is, or have any questions regarding the types of mortgages currently available, speak to our expert team today on 01344 843000 or email us.
WHAT IMPACT DOES IT HAVE ON THE PROPERTY MARKET?
With this pause on rate hikes, there is a new sense of hope for borrowers, which is likely to translate into boosted consumer confidence and renewed interest in property this autumn. The BoE’s decision may be seen as a signal of economic stability, potentially inspiring greater confidence in the housing market.
The next few months will be a crucial indicator of the direction the UK’s real estate market is heading as we start to look to 2024. If you’re considering putting your home on the market, now could be the time to get your home in front of the right audience.
THINKING ABOUT MAKING A MOVE NOW?
The driving force behind moving should be that buying property is a medium to long term investment, especially as statistically any home owner who has had their home for 10years or more will have seen a significant increase in the value of their property.
Economic factors that have been pushing up rates to combat inflation shouldn’t be seen as a barrier to making a property purchase as the wider economic backdrop can move fast. The BoE stats this month that inflation hasn’t reached as expected over the summer and Inflation has started to fall. It was up over 11% in October last year and it was just down under 7% in August this year. (www.bankofengland.co.uk).
If you are thinking of moving, property experts have said not to put a hold on your plans as buying a home with a mortgage can take anywhere between 3 to 9 months and a lot can change in that time.
We are seeing many buyers moving very quickly and homes selling and completing in just a couple of months. The number of buyers’ vs property available in the area is still high with most competing on price to secure their next home in time for the new year.
If you’re not sure what your current home is worth, you can have your home valued by our expert team for free today, visit our website here or contact the office and we will be happy to visit and conduct a free Valuation for you. Knowing the value of your own home can help to understand the likely amount you’ll sell for and how much you may need as a mortgage for your next home.
GET IN TOUCH
If you are thinking of moving in or out of the area, make sure you take a look at our amazing catalogue of properties for sale in Virginia Water and the surrounding areas. If you’d like to speak to someone about properties to let in Virginia Water, a member of our expert team would be happy to help. You can call us on 01344 843000 or email us. You can also follow us on Facebook, Twitter, Instagram, and LinkedIn.