As we have just ended one year, it’s only natural to question what lies ahead in the next. And, after what has been a turbulent six months for those applying for a UK mortgage, people’s attention is now turning towards getting a mortgage in 2023. Or, rather, people are asking will I still be able to get a mortgage in 2023?
If you’re searching for UK mortgage predictions, then hopefully this article will give you food for thought. And if you’re one of the many people that we know are asking ‘when should I get a mortgage?’, then this article may be of use.
What goes up…
Whilst it’s a little premature to begin talking about how things are going to be easier in 2023, the general feeling amongst us Guildford mortgage brokers (and mortgage brokers nationwide, for that matter) is that mortgage rates will fall this year. In fact, they have already started to fall.
From seeing the best fixed rate mortgage deals of around 2.00% to 2.50% only 12 months ago, in October 2022 we saw rates hit a whopping 6%! However, whilst interest rates are going to continue to rise, with many experts predicting the Bank of England’s (BoE) base rate will peak at 4.50%, fixed rate mortgage borrowing is predicted to fall gradually over the next 12 – 18 months.
And this poses another question – what should those applying for a mortgage aim to do in the interim?
A tracker for transient times?
Whilst things have changed since we last covered the dilemma of fixed or tracker mortgages, the basic premise remains the same. At the time of writing the last piece, UK fixed rate mortgage rates were increasing and there was no sign of them slowing down.
However, whilst fixed rate mortgages have already come down since then, it doesn’t mean that tracker mortgages should no longer be considered. As it stands, for some of our clients, tracker mortgages represent better value than fixed rate mortgages.
Of course, this will change as the Bank of England’s interest rate continues to climb. But at this point it’s important to remember the benefits of tracker mortgages, one of which is that there generally aren’t any early repayment charges to exit the deal. On that basis, those looking to get a mortgage now might want to consider a tracker mortgage as an interim measure. Then, once locked into a tracker mortgage deal, keep an eye out for good fixed rate mortgage deals and at the point whereby they become cheaper than tracker mortgages, jump onto a new deal.
All too much?
Many industry experts predict that the cost of fixed rate mortgages and tracker mortgages could be neck and neck around spring. So, even if you opted for a tracker for Q1 of 2023 before switching, there’s a chance you could save money – although how much you might save depends on your LTV and any product costs charged by the lender.
If, like most people, you’re too busy trying to balance your job with the demands of family life to be constantly monitoring the mortgage market in order to work out how to avoid unnecessary costs, then that’s where we come in.
There are many benefits of using a mortgage broker – and this is one of them. A good mortgage broker should be monitoring the markets with a view to planning your next mortgage move, and then advising you as to what’s the best mortgage deal for you.
Over the last few months, our team of mortgage brokers in Guildford have been securing our clients the best mortgage deals in the UK. This is partly because of the comprehensive panel of lenders we have access to. However, it’s also because we’re constantly responding to changes in the market.
Whilst we can’t predict what 2023 will bring, we’re confident that it won’t be as challenging as the latter half of 2022. What we can be certain about, though, is that getting a mortgage with a mortgage broker is easier than going it alone.
Whether you’re considering a fixed or tracker mortgage, for up to the minute mortgage advice from our team of Guildford mortgage advisers, contact the team on 01483 238280 or e-mail info@complete-mortgages.co.uk.
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