On 11 th May, the Bank of England raised interest rates to 4.5% – the highest level for almost 15 years. Many new homeowners who chose a tracker mortgage over a fixed-rate mortgage in a bid to pay less overall will now have to swallow this increase, which will equate to an extra £24 a month.*
The change will affect 1.4 million people with a variable and tracker mortgage, and the 1.8 million people expected to apply for a new mortgage in 2023. Overall, the Bank of England says that four million households will pay more for their mortgage than last year.
However, many forecasters are still predicting mortgage rates to continue stabilising – or even fall – during the coming months. We’ll just have to watch this space!
In other news, Skipton Building Society is now offering renters with a faultless payment history a no-deposit mortgage. The deal has limitations and downsides, so it’s unsuitable for everyone. However, it does give first-time buyers, specifically those paying a high monthly rent, more options to buy.
While the nation is still facing some economic uncertainty, the housing market has proved stronger than many expected, so buyers and sellers can remain optimistic. To learn more about what’s happening locally, call us to discuss your options.
To see how much your home may be worth, click here to book a free valuation!