The Bank of England have voted 8-1 to keep interest rates at 5.00%. One member voted for a rate cut to 4.75%.
Will there be further cuts?
Inflation is currently at 2.2%, which is slightly over the target of 2.00%. However, as inflation continues to fall, Andrew Bailey, the Bank of England’s governor hinted at further rate cuts in the coming months – although warned that they need to be careful to “not cut too fast or by too much”.
While holding rates seemed like the logical choice this month, the effects of the reduction in July has flowed into the housing market, as mortgage approvals have recovered to pre mini-Budget levels.
Should I secure a mortgage now or wait?
If your mortgage deal is coming to an end in the next 4-5 months, it’s still prudent to look at your mortgage as early as possible. With lenders already fighting to be at the top of the best buy tables, there is no guarantee your existing lender will offer the best deal for you to remain with them.
Moving a mortgage to another lender can take 2-3 months in total, so if you leave it too long, you are likely to be stuck with whatever your existing lender will offer you.
By securing a deal early, it would give your broker the opportunity to reassess the market closer to the end of your fixed rate, with not only the new lender, but also your existing lender – maximising the chance of securing the best rate when your current deal expires.
Get in Touch
If your mortgage deal is coming to an end this year, you should secure a deal 6 months before it ends. If rates continue to rise, you’ve secured the best rate. If rates drop, you could take advantage and switch rates before completion.
Contact Thameside Mortgages today to learn more about how they can help you secure a great deal.
You can call us on 03455 120 125, or complete the form below.
Post from Thameside Mortgages
A mortgage is a loan secured against your home or property. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other loan secured on it. The Financial Conduct Authority does not regulate most forms of buy to let mortgage.
