January may have been a rather damp drag so far but in terms of the property industry, things have been moving at a steady pace already this year.
The Bank of England interest rate cut in December from 4% to 3.75% sparked renewed enthusiasm for property purchases. Further gradual reductions are expected in 2026, as the Bank works to bring down inflation in line with the 2% target.
Lenders have begun to reduce mortgage rates accordingly which has driven increased house market activity. Last year there was some stalling in the market as the economy waited to establish the full impact of the Budget in November. When the Chancellor’s fiscal statement was not as significant as previously predicted, we saw renewed interest in the housing sector again.
Is your mortgage ending?
Competitive mortgage rates are good news for the 22% of property owners who are expected to remortgage in 2026. Many who chose to fix their mortgages in 2021/22 (when interest rates were low) will soon be rolling off their current loan and wondering what their new repayments might look like. Official figures suggest nearly two thirds of those with deals ending soon are anticipating higher monthly repayments.
The good news is that you can start looking for new deals now – you should not wait until your current loan period ends if you wish to secure the best option.
You can get the ball rolling six months before the end of your loan to lock in the most appropriate repayment deal as soon as it becomes available.
Understanding how your mortgage rate will change – whether that’s an increase or decrease in your repayments – can help you to budget and plan ahead for your family’s needs.
Please note: These articles are for information only as we no longer provide advice on mortgages. All requests for mortgage advise will be referred to Charterhouse Mortgages & Protection.
