Should buyers be worried about interest rates?

The team at ESPC Mortgages, give their top tips on how to handle your mortgage interest rates.

There has recently been a lot of negative press about interest rates. Rates began rising after the UK Government’s mini-budget in September last year, leading to a lack of confidence in the market from lenders and a lot of uncertainty.

The Bank of England (BoE) raised interest rates again on 23rd March with a 0.25% rise bringing the base rate up to 4.25% in an attempt to slow rising inflation. This will mostly affect those who are on tracker mortgages who will see an immediate impact on their mortgage repayments after the BoE rate hike. The average mortgage payment is expected to rise by about £24 monthly for the average tracker mortgage and £15 a month for the average standard variable rate (SVR) mortgage.

Despite this, over the past few months, lender confidence has returned and fixed rates have been consistently reducing. For those who want to know exactly how much they will pay each month, a fixed-rate product provides that security, remaining unchanged for the duration of the deal. During the fixed period, you’ll be protected against any rate increases, but at the end of the fixed period, you automatically move onto the lender’s variable rate, which will likely be a lot higher.

Despite speculations to the contrary, the outlook for the immediate future is looking a lot more stable. Engaging with an ESPC mortgage adviser can help you keep on top of market changes and the dynamic world of mortgages and help you get the most competitive product for your circumstances.

ESPC magazine

This article appeared in the April 2023 issue of the ESPC magazine. Find out more about the ESPC magazine and read the latest issue online. 

The initial consultation with an ESPC Mortgages adviser is free and without obligation. Thereafter, ESPC Mortgages charges for mortgage advice are usually £395 (£345 for first-time buyers). YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOANS SECURED AGAINST IT.

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ESPC (UK) Ltd is an Appointed Representative of Lyncombe Consultants Ltd which is authorised and regulated by the Financial Conduct Authority.