The Bank of England made the decision yesterday to maintain the Base Rate at 5.25% for the second consecutive time. With this consecutive hold, many industry experts speculate that we may have reached a peak. The mortgage market is showing increased stability compared to the previous 12 months. Nevertheless, there will need to be further reductions in inflation before we start to see any cuts to the Base Rate.
For individuals currently holding Tracker rate mortgages, there will be no changes to their rates or payments at present. Prospective homebuyers or those seeking to move home now have access to rates below 5% with a deposit of 15% or more, a trend we hope will continue in the present direction. However, recent UK finance data indicates an estimated 800,000 fixed rate mortgages were set to expire in the latter half of the year. These borrowers are likely to experience an increase from their initial rates.
Defaults are on the rise, at the highest rate since 2009, outlining the importance of The Mortgage Charter. If you are encountering difficulties in meeting your payment obligations, it is advisable to promptly engage a Broker or consult with your Lender for guidance.