Every time there’s a financial crisis, such as the one we’ve experienced over the last few months, people tend to batten down the hatches, hunker down and wait for the economic storm to pass.
Ironically, January 16 was Blue Monday, which is referred to as ‘the most depressing day of the year’ – a day when people are most likely to drop their New Year’s resolutions and experience the seasonal blues. However, the news published only the day before revealed that when it comes to the mortgage market, the only thing that’s blue is the sky as the housing market gets ready for a bright 2023.
Rightmove has announced that demand from buyers jumped 55% in January, which represented the biggest New Year rebound since 2016. House prices also jumped 0.90% after falling for the last two months. However, as a Guildford mortgage broker, the most notable change is that UK fixed rate mortgage rates are falling.
Despite the Bank of England (BoE) raising the base rate an astounding nine times since December 2021 – and fixed rate mortgages peaking at 6.65% in October – it seems that whilst the days of incredibly cheap UK mortgage deals are behind us (for now, at least), getting a mortgage in 2023 is once again becoming more affordable for the majority of the UK.
Our team of Guildford mortgage advisers has been inundated with enquires from those looking to get a mortgage in Surrey, many of whom are looking for guidance as to which way the mortgage market is going to go. Whilst we can’t be certain of anything, the news that property prices are going up and mortgage rates coming down is certainly very positive.
The next question we are typically asked is ‘should I fix or get a tracker mortgage?’. This is a difficult one to answer, too, as there are a few factors to consider. The first of which is that the BoE’s base rate is now expected to top out at 4.25% to 4.50% this year, as opposed to the much higher figures previously thought, which means that tracker mortgages could continue to be an attractive proposition for some time yet.
The second point is that if fixed mortgage rates continue to fall, then they’re going to become more and more popular – however, the point at which you decide to fix is likely to depend on a few variables including the rates and how long you have left on your current mortgage.
The best way to quickly and easily establish your own situation and determine whether it’s time for you to fix or not is to book a free mortgage consultation with one of our mortgage brokers in Guildford. Although we’re Guildford-based, our video consultation service means that wherever in the UK you are, we can provide excellent mortgage advice and help you take your next step on the property ladder.
With so much uncertainty in the world right now, you can be certain that as an award-winning mortgage broker we’ll provide you with access to the best mortgage deals in the UK.
Contact our team of Guildford mortgage brokers by calling 01483 238280 or e-mailing info@complete-mortgages.co.uk.
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