Many clients have held off remortgaging as the market has been so volatile, fearing fixing too early could result in securing a rate only for the market to stabilise and rates to reduce.
The good news is there are still plenty of attractive rates available. We have recently seen 5-year fixed rates drop below 4%. Compare this to the average Standard Variable Rate (SVR) that now stands at an average of 7.13% across the top 10 lenders.
Choose a broker that looks after your best interests
The team at Professional Contractor Mortgages offer a system called PAMM: the Proactive Mortgage Management System. PAMM constantly reviews the rate you are paying vs the rates available to make sure you get the best deal.
In a market where rates are changing daily the best advice is to engage with a specialist broker as soon as possible. Even if the best course of action for you is to sit tight, our trained consultants can agree a contact strategy with you to make sure you don’t miss out.
Reuters recently polled analysts and reported that home prices will fall less than first feared in 2023 as a resilient job market and easing fears around a recession soften the expected blow.
It did note that it expected those with mortgages to be hit by a further Bank of England (BOE) base rate increase of 0.25% at the end of March before pausing. It is also expected that after continuous price increases, house prices will fall by 2.4% in 2023 far shallower than the 4.7% predicted in November.
Andy McBride, Director at Professional Contractor Mortgages had this to say:
“The lending markets do appear to be stabilising and lenders have a good appetite to lend resulting in some attractive rates. This coupled with increasing SVR’s does mean it’s imperative clients review the remortgage options available.”
“Another point worth noting is that house price reductions can impact the Loan to Value (LTV) of your mortgage. This metric is used by lenders when pricing products and can have a huge impact on the rates available to you.”
Call Professional Contractor Mortgages on 02394 212912 for specialist advice from our qualified mortgage brokers, or complete our online contact form here.