So, the Truss Turnaround (an ‘unofficial’ term coined by our team of Maidenhead mortgage brokers) begins.
At the beginning of August, the Bank of England (BoE) cut the base rate from 4.25 per cent to 4 per cent in a move that will have undoubtedly caused a collective sigh of relief from mortgage brokers, not to mention borrowers, up and down the UK.
As a team of Berkshire mortgage brokers that witnessed first-hand the mortgage market take a tumble after Truss and Kwarteng torpedoed the UK economy with their ironically titled ‘mini-budget’ in September 2022, we’re firmly in that camp. And here’s why.
The two-year turnaround
Remember when the mini-budget sent two-year fixed mortgage deals skyrocketing upwards of 6 per cent? Well, we do – and if you were applying for a mortgage or had to remortgage during that period, then we’re sure you will, too.
However, since the BoE announced the base rate cut, two-year mortgage deals have dipped below 5 per cent. Not only that, but two-year mortgage deals are actually cheaper than longer term fixed mortgage deals, which further signifies that things are edging closer towards normalcy.
Another important piece of the puzzle is that swap rates are falling, too. And this, combined with the fact that lenders are having to sharpen their pencils in order to remain competitive, means that the UK mortgage market is now in a good place.
After what has felt like a long, arduous slog, homeowners and first-time buyers are finally in a good position to get good UK mortgage rates.
Strike while the iron is hot
It’s important to note here that the BoE’s decision to cut rates wasn’t carried out with a large majority; at 5-4, it was a close call.
With that in mind, our team of mortgage brokers in Maidenhead believe that further cuts to the base rate should not be automatically expected. Those passing up cheap mortgage deals today in the hope of further base rate cuts (and therefore cheaper mortgage deals) tomorrow, may well kick themselves.
In fact, this current window is one of the clearest we’ve had in just under three years, so taking advantage of this newfound stability should be the order of the day. However, it’s important to remember that things can change very quickly. The last few years have proven as much.
So, if you see a great mortgage deal as lenders scramble to outdo each other, then our team of Maidenhead mortgage brokerswould suggest you take it.
But seeking good mortgage advice first is key.
A long-term approach
Following the base rate cut, expect to see a number of deals flood the market.
However, the cheapest two-year fixed rate mortgage might not be the best two-year fixed rate mortgage for you. To help you navigate the mortgage market and find the right mortgage for you, get in touch with Alton Mortgages – a Maidenhead-based mortgage broker with a national reach.
Not only can we find the right mortgage to match your lifestyle, but we can find it from a large panel of lenders. Or, to put it another way, just one meeting with us will open up the doors to many lenders’ portfolio of products.
Need help with getting the best two-year fixed mortgage rates? Contact our team of mortgage advisers in Maidenhead. You can reach us on 01628 560820 or by emailing enquiries@altonmortgages.co.uk.