If you’re not using a mortgage broker right now, then getting a mortgage must be a minefield. It’s certainly a lot more erratic than it was 15 months ago.
Over the last couple of years, we’ve seen products being pulled, rates changing daily and, more recently, rates dropping to more competitive (if not wholly palatable) levels. But wait, things seem to be changing – yet again!
Yo-yo mortgage rates
If homeowners and those hunting for the best mortgage deals in the UK weren’t already confused, we’re now seeing some large lenders increase their rates whilst others decrease theirs.
So, what exactly is going on? What does this mean for the wider mortgage market? And, more importantly, what does it mean for those looking for a mortgage?
It seems that there are a couple of factors at play. Firstly, swap rates are on the up. And as we covered in a recent swap rate article, if they go up – even if the base rate of interest is going down – then it’s likely that mortgage rates will increase, too.
Secondly, everyone’s waiting to find out whether or not the Bank of England will decrease the base rate – or keep it at 5.25 per cent. Economic data expected over the coming days may shed some light on whether or not this will happen. So, until then, we seem to be on a mortgage roller coaster.
Get a mortgage now or wait?
As a Maidenhead mortgage broker, we’re being asked this a lot. And the truth is that it’s impossible to answer as there are many variables at play – none of which can be predicted or controlled by a mortgage broker.
However, if swap rates continue to rise then it’s only a matter of time before mortgage rates follow suit.
According to Moneyfacts, between the start of January and February there was a 0.37 percentage point fall in the average two-year mortgage rate. Or, to put it another way, mortgage rates have had their biggest fall since December 2022.
On that basis alone, we would recommend those looking to get a new mortgage do so now rather than wait. Remember, a mortgage offer lasts for six months – so securing an offer at today’s rate could be a smart move. If mortgage rates become cheaper, then simply reapply for a better deal before the existing offer is due to begin.
Looking for the best mortgage deals? If so, contact our team of Maidenhead mortgage advisers on 01628 560820 or by emailing enquiries@altonmortgages.co.uk.