As they say, there are only two certainties in life: death and taxes. Cheap mortgage rates certainly don’t fall into this category.
As it stands, UK mortgage deals are cheaper than they have been for a while, and there is the expectation that they’re going to get cheaper still. But, just as the value of stocks and shares goes up and down, mortgage deals do, too.
And, just as it’s very hard – no, impossible – to predict when the market is going to bottom out, it’s equally impossible to know when mortgage rates are going to be at their cheapest. It’s only really in hindsight that we’ll be able to establish this.
Now, everybody wants to get the best mortgage deal – and some might be happy to take what they believe is an informed gamble by waiting for them to get even cheaper – but as a Guildford mortgage broker, we’re urging our clients to exercise a little caution when it comes to waiting for the UK’s cheapest mortgage deal.
Oil and mortgages
An unlikely pair, we know – particularly in the context of this article. However, there is a link.
A recent article in The Intermediary highlighted how a number of city traders are betting on higher oil prices underpinning another base rate hike in November, the result of which has pushed up swap rates. And, as you may recall from an earlier Complete Mortgages article on swap rates, when swap rates go up, so too do fixed rate mortgages.
So, from the perspective of our team of Guildford mortgage advisers, it’s now a case of when and not if mortgage rates are going to get more expensive.
The time is now
Given that mortgage rates could well begin their ascent any time now, our view is that anyone thinking of getting a mortgage should view this next week as a window of opportunity and use it to secure a mortgage offer at today’s relatively favourable prices.
Remember, a mortgage offer tends to last for around six months. So, even if you find that rates do become cheaper after you’ve already received an offer, then there’s nothing to stop you from swapping to a better rate.
Of course, this is where the benefits of using a mortgage broker become clear, as we can make swap you to a better rate – or change lender, if a better deal comes up elsewhere – so that you don’t have to.
There’s no guarantee that mortgage rates are going to continue to slide, so don’t wait too long. Otherwise you may find yourself making a short-term gamble that has long-term financial implications.
For help with applying for a mortgage, contact our team of experienced Surrey mortgage brokers on 01483 238280 or e-mail firstname.lastname@example.org. We specialise in first-time buyer mortgages, buy to let mortgages and equity release mortgages.