Lenders act swiftly to the inflation rate confirmation and subsequently mortgage rates increase.
The mortgage market has seen significant changes in the rates that lenders are offering clients. Over the last 24 hours we have seen the likes of Natwest, Barclays and Coventry all increase rates by up to 0.5% (a significant increase
If you have a mortgage with a product end date within the next 6-7 months then now is time to act, to lock in a potentially better rate than may be offered over the next 6 months
This last week, like the mini budget crisis last year, the lending landscape experienced significant challenges, with some lenders withdrawing their existing offerings and looking to reprice at higher rates.
We have seen lenders both pull product ranges and dramatically increase rates. Nationwide last week increased their rates by 0.45%. With Accord increasing rates by up to 0.8%.
This shift in mortgage products has been largely influenced by stronger than anticipated core inflation and this has led to rising gilt prices, which have approached levels observed during the mini budget. These factors, coupled with the projected future increase in the Bank of England base rate, have led some experts to forecast the base rate to rise as high as 5.5%.
The next MPC meeting is scheduled for 22 June, and it is widely forecast that there will now be a further base rate increase.
It is important to note that mortgage rates are expected to remain at a higher level for an extended period, surpassing earlier predictions. Consequently, it is important not to delay any decision to secure a new deal if your mortgage rate ends soon. Acting now could provide you with a significantly better deal than waiting as higher rates and costs are anticipated
