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Mortgages: is it too late to bag a bargain?


Here’s hoping that if you wanted to remortgage you took notice of our recent calls to action because it now looks as if mortgage rates are going up. Which, given that there’s no change in base rate you might think a bit odd. But here’s the rub: while base rate (which is set by the Bank of England) has been stuck at 0.25% for absolutely ever it could soon go up. Several lenders in the past few days have put up their fixed rates, including the two largest lenders, Halifax and Nationwide. More will undoubtedly follow.

To be fair, lenders are reacting to money market movements when they set fixed mortgage rates: and these markets can seem highly emotional. However, this time it’s the Bank of England governor Mark Carney who has (almost) said that base rate is likely to go up soon. Although of course, it might never happen actually happen: Carney is a wise old (silver) fox and maybe his just hinting a rise is on the way is enough.

But hang on a minute: all isn’t lost if you still want to remortgage or indeed take out a new home loan. You might still be able to nab a pre-Carney’s-last-week’s-comments. And even if you’ve missed the very best deals those fixed rates on sale now are still pretty good. Lenders which have put up rates have only added 0.2 or so to their fixed rate deals, after all. If you can fix at less than 1.5% for two years or less than 2% for five years (both easily done – check out a fee-free mortgage broker such as London & Country) then that’s surely going to look like a great deal in the years to come.
And see our guide to mortgages here

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Wednesday, 24 April 2019