Bank rate held at 5.25%. What Now for UK Mortgages?

The latest episode of Citrus Mortgage Bites is packed with valuable advice for anyone looking to buy a home or remortgage their existing property. Richard Harris and Holly Bettles, our Mortgage and Protection Adviser, discuss the recent decision by the Bank of England to hold the base rate and explore what this means for UK mortgages.

Key Takeaways:

  • Mortgage Rates Can Move Independently of the Base Rate: Even if the Bank of England holds the base rate, lenders can still adjust their mortgage offerings. This means it’s crucial to shop around for the best possible rate, not just accept the first offer you receive.
  • Beware the SVR Trap: Coming to the end of a fixed-rate mortgage product and transitioning to the lender’s Standard Variable Rate (SVR) can result in significantly higher monthly repayments. Be proactive and plan ahead to secure a new deal before your current fixed term ends. 
  • Your Rights as a Homebuyer: Estate agents cannot force you to use their in-house mortgage adviser. You have the right to shop around and find an adviser who works in your best interests.
  • Flexibility is Key: Don’t hold off securing a new mortgage deal simply because you’re worried about future interest rate changes. Many lenders offer the ability to lock in a competitive rate now with the flexibility to adjust later if needed.

Watch the full video to learn more

In this episode, you’ll also gain valuable insights on:

  • The impact of the Bank of England’s base rate decision on UK mortgages.
  • The dangers of transitioning to a Standard Variable Rate (SVR) mortgage.
  • What to do when your fixed-rate mortgage term is coming to an end.
  • How to avoid pressure tactics from estate agents regarding mortgage advisors.
  • Why it’s important to shop around for the best mortgage deal.

Citrus Mortgage Bites: Your monthly dose of mortgage news, made bite-sized.

You can see more of our videos here.

To see last month’s click here.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

The Financial Conduct Authority do not regulate some buy to let mortgages.

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