As we embrace the summer of 2024, we bring you the latest insights and updates from the mortgage market and the economic factors affecting it. We have an overview of the key developments impacting your mortgage options and what they mean for you.
UK Elections on 4th July: Impact on First-Time Buyers
The UK elections, tomorrow, is a significant event with potential implications for the housing market, particularly for first-time buyers. Political parties have been unveiling their housing policies, and among the most notable proposals is the potential holiday on stamp duty for first-time buyers, to be extended. Another is a Mortgage Guarantee, where a 5% Deposit is used, with the government potentially guaranteeing a part of a home loan. These policies aim to make homeownership more accessible and alleviate the financial burden on new buyers.
As these policies are debated and potentially implemented, it’s crucial for first-time buyers to stay informed and prepared. It is important that you understand how these changes could benefit you and how to take advantage of any new opportunities that arise.
Disappointing to see there is no real incentives for existing homeowners on or those about to go on higher interest rates. Parties have given very little news to those who have high monthly mortgage payments, other than coupling these with the cost-of-living crisis. The long-awaited Bank of England Base Rate drops maybe on the horizon.
Planning and preparation with a qualified Mortgage Advisor are essential, to make sure that you are making the most of products available in the mortgage market now and potentially in the near future.
Interest Rates and Inflation: Inflation down to 2%, will Bank of England Base Rate follow?
Since August 2023, the Bank of England has maintained interest rates at 5.25%. As we look ahead to the Summer of 2024, the question on many minds is whether these rates will decrease. While predicting exact movements is challenging, current indicators suggest that rates may remain steady in the short term, with a view to a reduction beginning in August 2024, as forecast by many economists in the City of London.
UK inflation was recorded at 2.0% in the most recent update, June 2024, on target with Bank of England expectations. Although not certain, this should have a positive influence on the monetary policy decisions, regarding interest rates coming down in July or August.
Staying proactive and informed about potential rate changes can help you make the best financial decisions regarding your mortgage.
Re-Mortgaging: Securing the Best Rates
For those approaching the end of their mortgage product period, now is a crucial time to consider re-mortgaging. Many economists have anticipated potential rate decreases over the next six months, as a result lenders have locked in their current rates with that in mind.
We have seen slight increase in the fixed rates in the recent weeks. Mortgage Lenders have reacted with unease to short notice of a General Election and the rumour of potential inflation increases, therefore a further delay in Bank of England Base rate drop. Unlikely, as this could be, it is best to prepare for all eventualities.
By locking in your new rates now, you can secure favourable terms and still benefit from any new products that become available before your current product expires.
Our advisors are ready to assist you in reviewing your options and ensuring you get the best possible deal. A lot of the groundwork can be completed now, allowing you to smoothly transition to a new rate and avoid any last-minute stress.
Buy-to-Let Mortgages: Innovative Lending Solutions
The buy-to-let market continues to evolve with lenders introducing new and innovative ways to support landlords. A notable trend is the emergence of higher fees coupled with lower interest rates, providing a balanced approach to lending. This strategy is becoming widely accepted as the norm among buy-to-let customers.
For landlords looking to expand their portfolios or refinance existing properties, understanding these new lending practices is essential. Our team can help you navigate these changes and identify the most advantageous options for your investment goals.
Euro 2024: A Note on England’s Journey
As a final note, we can’t ignore the excitement building around the Euro 2024 football championships in Germany. England’s journey has been marked by an indifferent run-up. We can do it! Let’s rally behind our team and hope for a memorable victory!
We’re Here to Help
At Intra Mortgage Solutions, we are committed to providing you with the latest information and expert guidance. Whether you are a first-time buyer, looking to re-mortgage, or exploring buy-to-let options, our dedicated team is here to help you make informed decisions.
We have successfully obtained almost a £1.4bn of lending for our clients since we became Directly Authorised in 2019, with over 3000 mortgages. Thank you for your continued support! Our Mortgage & Protection Advisor’s here at Intra receive over 100 hours of Continued Professional Development, to ensure our clients & solution partners receive the best possible outcomes.
Feel free to reach out to us with any questions or to schedule a consultation. We can assist in securing the best possible outcomes for your financial future.
Best Buys Table Generated on 12th June 2024 Type of borrower Purchase Price Deposit Borrowing amount Loan to Value Mortgage Term Mortgage Repayment First Time Buyer £350,000 £35,000 £315,000 90% 40 Capital & Interest Free Legals and Free Valuations on most mortgages – please enquire with your Mortgage Advisor Initial Term Initial Rate Initial Payment Reverting Rate Reverting Payment Total Fees Type APRC Total Cost over initial benefit period 2 years fixed 5.19% £1,628.14 9.49% £2,547.78 £1,740 Fixed 9.10% £47,080.00 3 years fixed 5.15% £1,620.03 7.94% £2,189.31 £1,009 Fixed 7.50% £59,415.00 5 years fixed 4.83% £1,555.78 8.24% £2,215.29 £35 Fixed 7.50% £93,382 2 years tracker/discounted 5.45% £1,681.30 7.94% £2,204.12 £10 Discounted 7.70% £40,361.09 Type of borrower Purchase Price Deposit Borrowing amount Loan to Value Mortgage Term Mortgage Repayment Remortgage £350,000 £140,000 £210,000 60% 30 Capital & Interest Free Legals and Free Valuations on most mortgages – please enquire with your Mortgage Advisor Initial Term Initial Rate Initial Payment Reverting Rate Reverting Payment Total Fees Type APRC Total Cost over initial benefit period 2 years fixed 4.82% £1,104.34 8.24% £1,549.74 £1,525 Fixed 7.90% £29,555.00 3 years fixed 4.49% £1,061.88 8.74% £1,603.47 £1,029 Fixed 7.90% £39,257.00 5 years fixed 4.42% £1,054.08 8.24% £1,502.52 £1,525 Fixed 6.90% £66,682.00 2 years tracker/discounted 5.39% £1,177.90 8.74% £1,628.47 £1,034 Tracker 8.50% £29,384.00 Type of borrower Purchase Price Deposit Borrowing amount Loan to Value Mortgage Term Mortgage Repayment Home Mover £350,000 £140,000 £210,000 60% 30 Capital & Interest Legal Cost Contribution and Free Valuations on most mortgages – please enquire with your Mortgage Advisor Initial Term Initial Rate Initial Payment Reverting Rate Reverting Payment Total Fees Type APRC Total Cost over initial benefit period 2 years fixed 4.78% £1,098.31 8.74% £1,618.33 £1,099 Fixed 8.20% £29,493.00 3 years fixed 4.57% £1,072.79 8.74% £1,602.01 £1,034 Fixed 7.90% £45,719.00 5 years fixed 4.28% £1,036.77 7.50% £1,405.77 £999 Fixed 6.40% £65,338.00 2 years tracker/discounted 4.99% £1,015.00 8.24% £1,554.22 £1,015 Discounted 7.90% £28,039.96 Type of borrower Purchase Price Deposit Borrowing amount Loan to Value (LTV) Mortgage Term Mortgage Repayment Rental Income Per Month Buy to Let – Remortgage £350,000 £140,000 £210,000 60% 25 Interest Only £1,500 Free Legals and Free Valuations on most mortgages – please enquire with your Mortgage Advisor Initial Term Initial Rate Initial Payment Reverting Rate Reverting Payment Total Fees Type APRC Total Cost over initial benefit period 2 years fixed 3.19% £558.25 10.24% £1,792.00 £21,589 Fixed 10.10% £34,987.00 3 years fixed 4.89% £855.75 8.24% £1,442.00 £3,530 Fixed 7.90% £34,337.00 5 years fixed 4.14% £724.50 8.49% £1,485.75 £6,725 Fixed 7.70% £50,195.00 2 years tracker/discounted 5.00% £875.00 8.49% £1,485.75 £4,200 Discounted 8.30% £25,200.00 3 years tracker/discounted 5.25% £918.75 7.00% £1,225.00 £1,300 Discounted 6.80% £34,375.00 5 years tracker/discounted 5.25% £918.75 7.00% £1,225.00 £1,300 Discounted 6.70% £56,425.00 For Alternative Loan amounts and Higher Loan To Values please enquire with your Mortgage Advisor. Please note that these products will not be suitable for all clients or enquiries. However we are more than happy to do some research for you afer an initial phone call or online meeting.
Please enquire on enquiries@intra-pf.com or 02074594822.
This table is for Generic Illustrative Purposes only and should not be taken as advice. Please ask your Mortgage Advisor for the breakdown of all fees. YOUR HOME MAY BE REPOSSESED IF YOU FAIL TO KEEP UP WITH YOUR REPAYMENTS.
Intra Mortgage Solutions – Regulated by the Financial Conduct Authority; 832376. This table of Best Buys for Mortgages was correct on 16th June 2024: Source Mortgage Brain Anywhere.