Mortgage market review
It’s been a busy couple of months in the mortgage market, with rising interest rates and new product ideas dominating the discussion.
Following the Bank of England’s decision to raise interest rates, two million mortgage holders with standard variable rates or tracker mortgages are already facing higher repayments.
Bank Rate increases will also impact those with fixed-rate contracts, many of whom will face higher costs when their current deal ends. Although 83% of existing mortgage holders are on fixed-rate contracts, almost a third have short agreements of up to 24 months1.
How would you feel about repaying your mortgage for fifty years? Ultra-long mortgage deals are one of the government’s proposed solutions to help more people own a home. The plan would help more people build equity rather than paying rent, with a longer mortgage period allowing larger sums to be borrowed.
Here to advise
We’re on top of all the breaking news and new ideas. With so much happening right now, getting the right advice is more important than ever. Wherever your property journey is heading, we’ll help you navigate the choppy waters.
1Bank of England, 2022
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments