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One of our Mortgage & Protection Advisers David Williams was recently interviewed by the BBC Economics Editor Faisal Islam on the current UK economy and the effect it has on mortgage rates and the financial market.

Here are the 3 key points by David from his interview that he thinks people should be aware of if they currently have a mortgage or are looking to buy their first property.

Bank of England base rate has remained the same

With the Bank of England’s latest base rate announcement revealing it has remained the same, this means that some fixed rates are now lower than the base rate. This is more positive news for buyers than it has been previously.

Flexibility

Due to the rate rises over the last year, buyers and existing home owners are now looking at the term of their mortgage to ensure they can still afford it. There is flexibility available on lengthening a mortgage to keep the monthly payments down to make it more affordable. As David explains in his BBC interview, “When we come to remortgage, they are going longer - anywhere between 10 and 15 years, depending on their age".

Fixed Rates

We are seeing the market return to similar rates as it was in December 2022 and inflation has decreased since April 2023. This is giving a positive feeling about how the housing market is going to be in 2024, which is good news for anyone who is thinking of getting started or climbing the property ladder.

To read the full BBC article click here.