Expert Guest Article
James Keable
Finance and Mortgage Services Director
Capital Private Finance
Lately, there have been challenging headwinds blowing up towards the property industry, affecting all buyers, from first-time buyers to those who want to remortgage.
This year started in the doldrums of the fallout from the September 2022 Mini Budget. However, the surprise of many is that the mortgage rates right now are actually not much higher than the ones available then, even after a couple of Bank of England rate rises, including the most recent one 0.5% announced on Wednesday 21st of June.
For example, looking back to mid-January 2023, a 5 year fixed mortgage with 30% deposit was available at just under 4.5%. Today, a similar product might cost around 0.8% more (or on a £250,000 Mortgage over 25 years, would be circa £125 a month).
Mortgage rates available now are actually lower than those that were available at the end of last year!
The press usually writes about average mortgage rates, which incorporate considerably higher interest rates, but this does not apply necessarily to everyone. In other words, the media tend to analyse in a general way all cases: from loan to value products for those with no deposit, products that have a 40% - 50% deposit which are usually much cheaper, as well as specialist products that often have a higher pay rate. As a result, the average price of a five-year fixed-rate mortgage can be quoted at above 6%.
A mortgage loan can fluctuate depending on the circumstances of each person and the financial condition of the property market. It is vital to highlight the importance of approaching the expert guidance of a mortgage advisor and not relying on general information.
If you are looking for mortgage advice, our sister company, Capital Private Finance, has expert brokers that provide personalised guidance to make sure you get the best rates at the right time.
Get expert mortgage and protection advice tailored to you
The experts at Capital Private Finance have access to a vast array of mortgage products and can access a range of specialist products not available to all brokers. This means that if it is possible to arrange finance, then we should be able to help you achieve your goals.
Contact Capital Private FinanceALL MORTGAGES ARE SUBJECT TO STATUS AND LENDER CRITERIA. MORTGAGE PRODUCTS CAN BE WITHDRAWN AT ANY TIME.
A FEE WILL BE PAYABLE FOR ARRANGING YOUR MORTGAGE. YOUR CONSULTANT WILL CONFIRM THE AMOUNT BEFORE YOU CHOOSE TO PROCEED.
YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. YOU MAY HAVE TO PAY AN EARLY REPAYMENT CHARGE TO YOUR EXISTING LENDER IF YOU RE-MORTGAGE.
Mortgages available through Capital Private Finance. Capital Private Finance is an Appointed Representative of Mortgage Intelligence which is authorised and regulated by the Financial Conduct Authority under number 305330 in respect of mortgage, insurance and consumer credit mediation activities only. Registered Office: Greenwood House, 1st Floor, 91-99 New London Road, Chelmsford, Essex, CM2 0PP. Registered in England & Wales under number 07552028.
