Zoopla recently announced the average cost of a fixed-rate mortgage is on its way down, with some high street lenders reducing their deals by 0.75%.
The average cost of a fixed-rate mortgage has fallen despite the recent interest rate hike.
Some lenders reduced the cost of their fixed rate deals by even more, with Britain’s biggest mortgage lender Halifax cutting its fixed rate deals by up to 0.25%, while Barclays has reduced its rate by up to 0.4%.
The decreases come despite the fact the Bank of England’s Monetary Policy Committee (MPC) increased the Bank Rate by 0.75% in early November.
The reductions suggest the cost of fixed-rate mortgages may already have peaked, despite the fact that the Bank Rate may increase further.
What about variable-rate mortgages?
Unlike fixed-rate mortgages, the interest charged on variable-rate mortgages moves up and down in line with the changes to the Bank Rate.
As a result, following November’s interest rate rise, the cost of a variable rate deal has increased.
But there’s some good news, as lenders do not appear to be passing on the increase in full to new mortgage customers.
What should I do now?
The current situation in the mortgage market is very fluid, which makes it difficult for people coming to the end of a deal to know what to do. This concern also extends to home-movers who may be considering their next move.
Given the fluid nature of the current market, it may be a good idea to speak with an independent mortgage broker to talk you through the pros and cons of various products available to you and help you find the deal that is best for you.
How can Complete help me?
At Complete, we work with an independent, family-run Mortgage Specialist who provides free, no-obligation advice. They also have access to the whole of the market enabling them to review every rate available to you and ensure you secure the best product for you.
If you are considering your next move or, are coming to the end of a fixed-rate and are unsure where to turn, get in touch – we’d be happy to put you in touch with one of our trusted advisers.