What Happens to UK Mortgage Rates? – Forbes Advisor UK

As the Bank of England kept the policy rate at its current record low of 0.1% in November, all eyes are now on December 16 when its monetary policy committee (which sets the rate and voted 7-2 to leave it unchanged this time around) makes its next decision – the 2021 final.

The base rate was expected to rise this month, fueled by factors such as rising inflation and a relatively stable job market. And mortgage lenders clearly think it’s “when” the base rate will increase, not “if”. Many new mortgage deals have already forecast an increase, indicating the end of the lowest mortgage rates seen in recent months.

The Bank itself has said current indicators suggest interest rates could reach 1% by the end of 2022.

As mortgage rates change, often on a daily basis, it can be difficult to keep up with what’s available. An easy way to keep bang up to date is to use our mortgage tables. These are powered by Trussle, a trusted mortgage broker and our mortgage partner.

What are the mortgage rates today?

To find out what offers are available at today’s rates for the type of mortgage you are looking for, you will need to enter your personal criteria in the table below. Here’s what to do:

• Choose if the mortgage should finance the purchase of a house or if it’s a remortgage for an existing property

• Enter the property value and the mortgage amount you need. This will automatically generate a percentage known as a “loan to value”. The lower the value of your loan, the better the available mortgage rates

• Check the appropriate box if it is a rental or interest-only mortgage (you will need a repayment strategy for these transactions), or if you are looking for a mortgage loan to finance a shared ownership goods

• Finally, filter your search by type of mortgage you want, say, a fix or a two or five year follow-up. The filter is set to a full 25-year mortgage term, but you can change it if needed.

What else do I need to know?

Mortgage offers that offer the cheapest rates usually come with a fee. You can choose to prepay them or add them to the loan. To factor in the cost of the fees, sort your results by “initial period cost” (in the “Sorted by” drop-down list).

Alternatively, you can rank the results by initial rate, lowest fee, or monthly repayment – even by the lender’s “follow-up” rate to which the deal will revert at the end of the term.

While mortgage rates change daily, the cheapest are reserved for larger deposits, typically 60% of the property’s value or more. And in any case, you will need sufficient income and a clean credit history to be accepted for a mortgage.

If you want to see what your monthly mortgage payments might look like in different scenarios as they are overlaid on the household bills, our mortgage calculator will do the sums.

While Trussle lists around 12,000 mortgage offers from 90 lenders – which is the vast majority of the market – some offers are sometimes available exclusively through a handful of brokers, so you might not see them. .

When can I start a remortgage?

Mortgage offers from major lenders tend to last six months (as noted in our Best Lenders for Remortgage), although some lenders cap expiration dates at three months. It’s worth looking for a new mortgage contract so far in advance, as you will be able to lock in a rate you see today – at no cost and with no strings attached.