Category: Finance


Tags: bank of england, Interest rates

Where Are Mortgage Interest Rates Going Today?

7th November 2019

Against the backdrop of political events in Westminster, the property market and by proxy the topic of mortgage interest rates, have taken a back seat from the national headlines in recent times.

Matthew Johnson

Mortgage Advisor

Matthew Johnson

Therefore in many ways, we are here to report some good news – in that mortgage interest rates don’t appear to be increasing any time soon.

Following the latest meeting the Monetary Policy Committee voted to keep rates on hold at 0.75% for the thirteenth month in a row, continuing the decade long trend of cheap borrowing since the financial crisis in 2008/2009.

 

INTEREST RATE HISTORY

At Curchods Mortgage Services what we are seeing at the moment is not just static interest rates, but real competition from major lenders to attract new business with the most competitive deal. The knock-on effect is some extremely low rates on offer. Lower interest rates mean lower monthly repayments and it’s cheaper than ever to borrow in order to purchase a property.

 

Frances Haque, the chief economist at Santander, commented:

“The decision to hold rates was widely expected, given the outcome of Brexit is still hanging in the air. Although the economic data published so far for the third quarter of this year suggests that a recession should be avoided, many of the fundamentals of growth such as business investment and productivity remain weak, with the MPC clearly sticking to its cautious approach. Until there’s more clarity on the final Brexit outcome, it’s unlikely we’ll see a change in rates this year.”

 

The Governor of the Bank Of England (BoE), Mark Carney, also signalled that prolonged Brexit uncertainty is likely to keep rates lower for a longer period of time, although he did once again stress that rates could move either up or down if a disorderly no-deal Brexit scenario ensues.

 

What is the best mortgage to get?

With so many mortgage products available the choice can be overwhelming and what is right for one individual isn’t necessarily the best option for another.

So here’s our quick guide to mortgages and which one might be best for you:

 

Fixed Rate Mortgage

A fixed rate mortgage is a mortgage where your interest rate is guaranteed to stay the same for a set period of time.

This can offer peace of mind because, unlike a variable rate mortgage (such as a tracker), you’ll know exactly how much you’ll need to repay each month during this period.

Fixed rate deals can last between one and 10 years. You can currently fix your rate for one, two, three, five, seven or 10 years. One-year fixed-rate mortgages are much less common and tend to only be available for borrowers with specific requirements, such as those buying with a Help to Buy equity loan or wanting to borrow a large amount.

Generally speaking, the longer your fixed-rate deal lasts, the higher the interest rate will be. This is because it is harder for a lender to predict what will happen in the market over a longer period of time – you’re essentially paying for the security of knowing that your rate won’t go up no matter what happens.

 

Tracker Mortgage

A home loan where the interest rate you pay is based on an external rate – usually the Bank of England base rate – plus a set percentage. The base rate is currently 0.75%. So, if the interest rate on a tracker mortgage was the base rate +1%, the amount of interest you would pay is 1.75%. If the base rate went up, the interest rate on your tracker mortgage would also rise.

Because a tracker mortgage is a type of variable rate mortgage, the total amount that you pay each month could change.

With each monthly mortgage payment, part of the money goes towards the interest charged by your lender and the other part towards repaying the money you’ve borrowed (the capital).

If your monthly payments increased because of a rise in the Bank of England base rate, the extra money you paid would only cover the increased interest charges – so you’d be paying more each month without actually clearing a greater proportion of your mortgage debt.

 

Repayment Mortgage

With a repayment mortgage, you pay back a small part of the loan and the interest each month.

Assuming you make all your payments, you’re guaranteed to pay off the whole loan at the end of the term.

 

Interest-Only

With an interest-only mortgage, you only pay the interest on the loan. At the end of the term, you’ll still owe the original amount you borrowed.

With an interest-only mortgage, your monthly payment pays only the interest charges on your loan, not any of the original capital borrowed.

This means your payments will be less than on a repayment mortgage, but at the end of the term, you’ll still owe the original amount you borrowed from the lender.

 

At Curchods Mortgage Services we are here to help you make the right decision. As an independent firm who covers the whole of market we have access to exclusive deals with some of the biggest lenders such as Halifax, Natwest and HSBC. Call us today to find out how we can find the right mortgage for you.

Similar Articles

Category: Finance


Tags: EQUITY RELEASE, RETIREMENT

How To Live Life To The Full With Equity Release

View Full Article
21st December 2018

Category: Finance


Tags: BANK OF MUM & DAD, FIRST TIME BUYERS, HELP TO BUY

How To Fund Your First House Purchase

View Full Article
18th October 2018

Category: Finance


Tags: MORTGAGES, SELF-EMPLOYED

Newly Self-Employed: How To Secure A Mortgage

View Full Article
28th March 2018

What Curchods can do for you

No Sale, No Fee

Our cutting edge marketing package includes professional photography and floorplans to present your property at its very best. There’s nothing to pay upfront, so you won’t pay us a penny until we’ve successfully sold your property.

Maximum Exposure For Your Home

We are one of the few agents to advertise on all the UK’s leading property websites including Rightmove, Zoopla, Primelocation and OnTheMarket, so you can be confident of having your home in front of thousands of buyers.

Our People

Over the 80 years we’ve grown from a single office to be the largest independent estate agent in the south of england. Our friendly yet professional guidance and advice, will give you a smoother and more enjoyable experience of moving home.

24/7 Access to Your Sale

Our website gives you instant access to information about your property sale, including updates, contract documents and correspondence and easy access to your property listing.

Tell Us What You Are Looking For

Not every property we have for sale is listed on our website - we arrange many sales before they ever appear online, exclusively to buyers registered on our database. Registering with us will give you the best chance of finding your dream home. stats

Advice From the Experts

We have ten mortgage advisers with over 100 years experience within the industry who can advise and find the right mortgage for your needs. We can also recommend qualified surveyors, solicitors and additional services to help at every stage of your purchase.

Selling Your Existing Home

If you have a property to sell, we recommend you find a buyer for your existing property before starting your search. Early preparation is key to a successful sale - we can help you establish its market value and find you a buyer.

24/7 Access to Your Search

Our website gives you instant access to information about your property search, including shortlisted properties and once you’ve had an offer accepted, updates and all correspondence.

Licenced & Regulated

We are members of ARLA Propertymark, the UK’s foremost professional body for letting agents which means we are required to operate in a transparent way, providing services which are subject to independent scrutiny, giving you peace of mind at all times.

No Let, No Fee

Our cutting edge marketing package includes professional photography and floorplans to present your property at its very best. There’s nothing to pay upfront for this service, so you won’t pay us a penny until we’ve successfully found a tenant your property.

Your Property in Safe hands

One of our locally based in-house property managers will take care of rent collection, maintenance and property inspections on your behalf. We are also one of the few letting agents that include Legal Eviction Expenses cover and Rent Recovery Protection in our standard fees.

24/7 Access to Your Portfolio

Our website gives you instant access to information about your property portfolio, including status updates on your letting, financial overview and statements, contract documents and easy access to your property listing.

Dedicated Local Point of Contact

Our experienced property management team based in branch, are readily available to respond to your enquiries, maintenance issues and any emergencies. We respond quickly and professionally providing guidance and advice throughout your tenancy.

Tell Us What You Are Looking For

Not every property we have to let is listed on our website - we arrange many tenancies before they ever appear online, exclusively to people registered on our database. Registering with us will give you the best chance of finding your dream home.

Licenced & Regulated

We are members of ARLA Propertymark, the UK’s foremost professional body for letting agents which means we are required to operate in a transparent way, providing services which are subject to independent scrutiny, giving you peace of mind at all times.

24/7 Access to Your Search

Our website gives you instant access to information about your rental search, including shortlisted properties and once you’ve had an offer accepted, updates on your Tenancy Application, rent payments, maintenance and all correspondence.

Buyers
Subscribe to our newsletter

“Livvy kept all parties updated throughout the whole transaction and she did a great job pushing the sale through! I'm not sure it would have happened without Livvy's perseverance. Thank you!”

Fiona

10/9/2019

Please confirm you consent to us using cookies to help with your property search and improve your experience on the Curchods website.

Cookies are small text files placed on your computer/mobile device that remember your preferences and what you were searching for. Our cookies don’t collect any personal information. For more information please read our privacy policy, thank you