In recent years, mortgage rates have been at all time lows and lenders have been keen to capitalise on the hot property market, which itself has been booming for the last 12-18 months.
Successive base rate rises have however meant that banks have adjusted their rates accordingly.
During a period of seven days in February, some mortgage lenders increased rates by as much as 0.5 percentage points, meaning we are now facing interest rates which are higher than they were pre pandemic, for the majority of borrowers. All of the main high street lenders have moved on their rates, with more rises expected over the course of this year. These rate rises apply to purchases, remortgages and buy to let buyers.
Those who are yet to see biggest rate increases are those with small deposits – typically first-time buyers however, the increases of the past few weeks could signal a turning tide for low-deposit borrowers. Rates for high percentage mortgages are higher than buyers with a larger deposit anyway.
Our mortgage adviser Craig has over 30 years experience and is best placed to look at the options available to you, whether you are a first time buyer, home mover, buy to let investor or looking to remortgage. Why not get in touch – its free!