Anthony Emmerson, Director of Trinity Financial, shares the latest mortgage market news, including the most recent rates amongst lenders.
Fixed rate mortgages have gone up in price although they still start from 3.79%
Banks and building societies have been pushing up the price of their best-buy mortgages in recent weeks and the number of sub-4% fixed rates to choose from has reduced quite significantly. However, rates may start to come back down again following NatWest’s announcement that it is lowering some of its mortgages by up to 0.41%.
Despite the almost constant mortgage rate changes there is still a strong demand for property and the housing market is still super competitive. At Trinity Financial, our brokers are finding there is still a lot of competition to purchase those special homes, and they have been busy arranging agreements in principle for our clients. Buyers still want to know they are in a good position to purchase a new home although this is likely to be after the chancellor announces the budget.
Nationwide for Intermediaries currently has the most competitively priced 3.89% two-year fixed rate, a 3.99% three-year fix, and a 3.79% five-year fix. These rates are available to borrowers with a 40% deposit and have £1,499 arrangement fees. Most other lenders are charging slightly more.
Even though most rates have gone up by around 0.3%, some mortgages available to borrowers with smaller deposits have improved. First-time buyers make up a large part of the mortgage and property markets now, and lenders need them to keep the market ticking over.
Skipton Building Society has introduced a £1,000 cashback option to its Track Record Mortgage. The Track Record Mortgage is the only 100% mortgage for renters available without parental guarantees, funds placed in a linked savings account, or the requirement for second charges placed on other properties. The no-deposit mortgage rates start from 5.29% on a five-year fixed rate.
Goldman Sachs has said it expects the Bank of England base rate could fall as low as 2.75% in the next year. The US investment bank said the Bank of England was poised to cut interest rates much faster than investors expected. However, higher public debt and population growth will still hem it in in the longer term. Santander has suggested the base rate will fall closer to 3.75% by the end of next year. If the Bank of England base rate does reduce around 3.25% it is not unreasonable to think that mortgage rates will be priced around this level, but it does seem a long way off given the current global issues.
Race to complete property purchases likely as first-time buyers in London face extra £6,250 on stamp duty bill
First-time buyers in London are set to be hit by an additional £6,250 stamp duty bill on average from next spring due to Rachel Reeves’s decision not to extend a discount introduced by the previous government.
The chancellor has reportedly decided not to continue the current scheme and increase the thresholds at which people start paying stamp duty from March 31. When this policy expires, the tax-free threshold for all homebuyers will return to its original level of £125,000 from £250,000, and for first-time buyers to £300,000 from its current level of £425,000.
Avoid the common mortgage mistakes
Whether you're a first-time buyer or a seasoned home mover, mortgage missteps can happen during the buying process, even if you're careful. Being prepared for some of the more common issues can make it easier to plan around them or devise a strategy to avoid them. Our tips may save you a small fortune and speed up the buying process! The top three mistakes include not getting a decision in principle before starting your property search, not reviewing your credit report early enough and not switching rates once a mortgage offer has been issued. Click here to read the rest of them in Trinity’s latest blog.
Additionally, if you’re interested in hearing how this month’s budget will affect the property market, listen to the latest episode of The Property Exchange, the podcast from Winkworth, to hear Anthony in conversation with Winkworth CEO Dominic Agace and property commentator Anne Ashworth as they discuss the potential changes.
Contact Trinity Financial
At Trinty Financial, we help all types of borrowers, from first-time and next-time buyers to business owners and international clients seeking £1 million+ mortgages. Book a mortgage consultation by calling 020 7267 9399 or emailing winkworthenquiries@trinityfinancial.co.uk.
