With a further increase of 0.25% to the Bank of England Base Rate last month, this has pushed rates to 4.25%. This is the 11th consecutive rise with rates being the highest they have been for 14 years. Amidst rising inflation, and a need to stabilise, the increased interest rate is believed to have peaked however with a further interest rate announcement scheduled for Thursday 11 May – time will tell!
What does this mean for mortgages? A change to interest rate matters to homeowners and those looking to borrow money, as this impacts the amount you will repay on loans. There is a wide choice of mortgage products available in the marketplace and it certainly pays to take the right advice and work the market.
At the beginning of last month, we saw mortgage rates start to level out. It is widely reported that the most recent change had already been factored into many mortgage products following the prediction that interest rates would need to reach 4.5% by the summer of 2023. The feeling is that lenders should now have confidence.
Given that rates are expected to fall back when inflation drops, it is likely that 5-year-fixed mortgages are priced lower than shorter term mortgage products, but this isn’t a one-size-fits-all.
Borrowing money against rural property can be a complex matter and not all properties tick the criteria of the high street banks. Our strong connections throughout the rural property sector, from mortgage advisors, to specialist lenders mean we can find you someone to help secure that dream property.