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Mortgage Market Update – What is happening with interest rates?

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It would be true to say that the general public and the mortgage industry are anticipating lower interest rates in the coming months.

Although the Bank of England have not reduced the base rate, which influences mortgage products, lenders have been reducing the interest rates on some products over the last few weeks.

However, lenders have been selective and rate reductions have only affected certain type of products.

The rate reductions have also varied quite markedly between lenders to attract certain borrowers.

Fixed rates are popular as they offer certainty, which is a key priority for high proportion of our clients.

At present 2,3 and 5 year fixed products are the most commonly available from most lenders on the market.

Currently, the cost of a 5 year fixed rate is lower than a 2 year rate. This isn’t usual as the certainty of payment over the longer period, historically has cost more.

As a result, borrowers may be tempted to select a 5 year fixed rate purely on the basis of the lower monthly payments.

This isn’t a straightforward choice however and one that we believe needs support and advice from an independent mortgage adviser to make sure whatever option selected, it meets a client’s short term and longer term needs.

Written by Jack Devlin, APR Money Limited

At John German we work alongside APR Money Ltd who can provide advice across the whole of the mortgage market and a thorough review of the lending options for clients, to secure the most cost effective and appropriate product for your needs.

Book a no obligation appointment here and a mortgage advisor will be in touch ASAP.

A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.

 

 

 

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Date Posted

July 31, 2024

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Author

Lucy West

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