Our weekly guide on Mortgage Best Buys Mortgage Rates. We also include commentary on the current market economy whilst keeping you updated with our Guides section on our website talking about Mortgages, Protection, Money, Property and Financial Planning.
Market Commentary
On Thursday 3rd August, the BoE increased base rate to 5.25%, in the following week we’ve seen the predictable-cycle happen again; lenders have reviewed and lowered some of there rates. Mortgage lenders increase mortgage-rates in the anticipation of BoE Base Rate rise, building-in a buffer a few weeks prior to a rate increase and then dropping thereafter. Although the market is is a changing complexion, and we never know what is round the corner, it feels we’ve reached our new normal for the next 12-18 months of mortgage-rates around ~5-6%, aligning with base rate.
Over the past decade rates at 1-2% has been ‘abnormal’ since the recession in 2008, this was as a result of irresponsible lending by banks that collapsed the economy, and BoE reduced base rate to the floor to help stimulate the economy – we are now in a very different market with much more responsible lending. Once the dust settles, we are approaching a healthy market for our economies growth.
In my personal opinion, the BoE Base Rate has yet to peak in 2023, perhaps somewhere around 5.75-6% meaning mortgage-rates may increase to 6-7%, once we see inflation starting to fall below 4-5%, the BoE base rate can find it’s normal level around 4.5-5% with mortgage rates around 5-6% for the foreseeable future.
It’s been reported by Halifax house prices have reduced by ~5% in the last 12 months, this was expected and much lower than some experts predicted with some as high as 20-25% drops. We may see house prices continue to fall for the next 12 months helping homes be more affordable for first time buyers and potential opportunities for landlords. As per the housing-index cycle, a year or two downward market before seeing growth for a number of years and hopefully as a healthy economy with responsible lending.
Many see the current complexion as a negative market; however my view is this is a perfect reset for us to see healthy growth in the years to come.
First Time Buyers Fixed Rates
| Lender | Rate | Loan to Value | Rate Type |
| Skipton | 6.56% | 95% | 2-year fixed |
| Virgin Money | 6.14% | 90% | 2-year fixed |
| Halifax | 5.98% | 95% | 5-year fixed |
| Halifax | 5.64% | 90% | 5-year fixed |
Large Mortgage Loans Purchase Rates over £1m
| Lender | Rate | Loan to Value | Rate Type |
| Natwest | 6.27% | 85% | 2-year fixed |
| Barclays | 5.99% | 75% | 2-year fixed |
| Natwest | 6.09% | 85% | 2-year tracker |
| HSBC | 5.54% | 75% | 2-year tracker |
Remortgage Fixed Rates
| Lender | Rate | Loan to Value | Rate Type |
| Principality | 6.05% | 75% | 2-year fixed |
| Virgin Money | 5.99% | 60% | 2-year fixed |
| Principality | 5.45% | 75% | 5-year fixed |
| Nottingham | 5.39% | 60% | 5-year fixed |
| Nationwide | 5.04% | 75% | 10-year fixed |
Buy to Let Purchase Rates
| Lender | Rate | Loan to Value | Rate Type |
| The Mortgage Works | Personal (5.29%) | 75% | 5-year fixed |
| Kent Reliance | Limited (5.24%) | 75% | 5-year fixed |
Products correct as of 12.08.23
ALL MORTGAGE RATES ARE SUBJECT TO CREDIT STATUS, INCOME AND AFFORDABILITY. ARRANGEMENT FEES AND EARLY REPAYMENT CHARGES MAY APPLY TO THESE PRODUCTS THESR ARE FOR ILLUSTRATIVE PURPOSES OF RATES. PLEASE CONTACT AN ADVISER FOR A RECOMMENDATION TO MEET YOUR CIRCUMSTANCES
YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
