Are Mortgage rates getting better?

We spoke with Matt Hays our Mortgage partner from Expert Financial for his latest view on the mortgage market after the recent rises in the last quater of 2022.

Mortgage Market Update (Jan 2023)

"2023 has started mostly as expected with mortgage lenders making reductions in their rates in a bid to be top of the “Best Buy” tables.  This is great news for customers as lenders now appear have new annual targets and they’re looking to win the business on price by adjusting their fixed rate downwards.

Many lenders have been marketing the decreases as “substantial” – though it seems the only rates that moved a lot were those that weren’t competitive in the first place.   That being said, the fixed rates are moving in the right direction which can only be a good thing for the end customer of course!

We’ve also seen a lot of enquiries for tracker rate mortgages so I wanted to do a little piece on this.

What is a tracker rate mortgage?

A tracker rate mortgage is a product where the interest rate is linked to an external benchmark.  Most commonly this is linked to the Bank of England (BOE) Base Rate which is, at the time of writing, 3.5%

The interest rate on your mortgage will track this rate with a certain differential.  For example, your mortgage might be BOE+0.69% giving you a current interest rate payable of 4.19%. If the BOE rate changes then your mortgage interest rate would change by the same amount at a pre-defined time, usually the 1^st of the following month.

The benefit of a tracker is that it will often be a lower rate than the fixed rates available.  The downside is the potential for it to increase.  There is still speculation that the BOE rate will increase further this year which may bring tracker rates much closer to the fixed and potentially negate their attractiveness.

My personal view is that everyone should consider a tracker rate but they’re not right for everyone.  The best way to decide is to talk to a mortgage professional who can give you advice about the options available to you and how changes in the BOE might affect your affordability."

Expert Financial have a team of qualified mortgage consultants who can explain everything in plain English and make sure you understand your options before you make any decisions. 

Feel free to contact us today and make an appointment for a free consultation.

Please call us on 01480 454040 or 01767 660700 or email us on team@harveyrobinson.co.uk

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Expert Financial (FCA number 489561) is an Appointed Representative of JLM Mortgage Services Ltd. JLM Mortgage Services Ltd is authorised and regulated by the Financial Conduct Authority (FCA), registration number 300629.

The FCA do not regulate some forms of mortgages. The guidance and / or advice contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK. JLM Mortgage Services is a trading style of JLM Mortgage Services Ltd, registered in England No. 470 1803.

Registered office: 8 The Pavement, St Ives, PE27 5AD. Expert Financial is a trading style of Expert Financial Ltd.