The Rising of Mortgage Rates

Mortgage rates continue to rise.

Property website Rightmove confirmed on Tuesday, 6 June, that this was the first week since January 2023 that mortgage rates averaged 5% or more across all loan-to-value bands.

With most households having enjoyed rates of between 1 & 3% over the last few years, there is undoubtedly going to be an inevitable payment shock with the rates that are available today, especially when an existing deal is coming to an end within the next 6 to 12 months.

One of the most common questions mortgage lenders are asked from application to application is, of course, how long does the mortgage application process take?

Halifax, Britain’s largest mortgage lender, withdrew mortgage rates on 6 June and announced new rates on the 7th. According to Halifax’s product guide, the rate on a 2-year fixed rate with a loan to value of 60% and £999 fee will rise to 5.36% as of today.

We urge you not to delay a decision regarding reviewing your remortgage/ product end-date options. Schedule a review using the diary link below. MMPE can help assist with the whole of market options assisting with a review of what your existing lender and the open market can provide. This may give you the opportunity to lock in a rate earlier than your existing lender may allow.

Schedule your mortgage review today

MMPE offer an ongoing review service, where rates are monitored through to completion. If your mortgage rate/deal can be improved, we act to secure you a better rate.

The cause of the increase in rates is predominantly due to unexpectedly strong inflation data that was published last month. This has been the main cause of a significant increase in market interest rates as investors have scrambled to price in more increases in borrowing costs from the Bank of England in the coming months.

It should also be noted that the next monetary policy committee meeting is scheduled for 22 June, where it is widely speculated that there will be further increases in the base rate. This will do little to calm the current issues with pricing.

Schedule your mortgage review today

Do not delay your decision to review your options.