8:57 AM, 4th October 2022, About A year ago
It’s just over a week since the Chancellor, Kwasi Kwarteng, presented his tax-cutting mini-budget, that kick-started a crisis of confidence in the markets. The tax cuts triggered a drop in the pound to a record low. The SWAP rates, the mechanism that lenders use to set their 2, 3, 5 and 10 year fixed rates, are all rising.
Lenders last week withdrew over 1,600 products, at the fastest rate on record. This was caused as interest rate expectations exploded, in response to the mini-budget.
The consensus is that the only way is up, for mortgage rates for the remainder of this year and next, so waiting a few months to lock in your mortgage rate could cost you thousands in the mid to long term.
The Bank of England has stated it will not hesitate to raise rates if necessary, at the next meeting of the Monetary Policy Committee, which is happening at the beginning of next month.
Mortgage lenders are beginning to return with new products. The best rates are likely to be snapped up quickly, before the lenders either withdraw them again or increase the interest rates further.
At Brooklands we constantly monitor all the mortgage products, as they are issued and are notified when they are going to be withdrawn.
Contact Brooklands Commercial Finance today to ensure that you don’t miss out.
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