Borrowers waiting to see if interest rates go down before reviewing their property loans may be disappointed.
This month we have seen some lenders increase their mortgage rates following the warning from the Bank of England governor Andrew Bailiey that potential interest rate cuts were ‘shrouded in uncertainty’.
Of course the UK is reacting to the as-yet-unknown impact of President Trump’s tariffs as well as geo-political events across the world. And despite a cut to central interest rates from 4.5% to 4.25% by the Bank in May, it is now expected that future cuts will not be forthcoming in the short term while there remains such economic volatility.
This shows the challenge in predicting how mortgage rates may move. For the majority of borrowers in need of remortgaging or reviewing their property loans, it will pay to start the ball rolling sooner rather than later – even if your current deal is not due to renew until 2026. It is possible to lock in future deals while you wait for your loan to come to an end.
A few weeks back, it was expected that we would see sharp cuts to interest rates but these predictions were quickly reversed after Trump’s ‘Liberation Day’. Trying to second guess what will happen in the market may mean missing out on better opportunities now.
House prices and demand have also remained strong, despite a slight cooling in the property market when the stamp duty reliefs finished in Spring. This indicates that buyers are moving forward rather than waiting for any significant rate drops that could be some time off yet.
To chat through your options with an expert, please contact Beulah Antonin at Charterhouse Mortgages & Protection*. Beulah can advise on the full range of loans from investment purchases to commercial property and bridging loans.
Beulah can be contacted on beulah@chmap.co.uk or 020 3838 1101.
*Charterhouse Mortgages & Protection is a trading style of Medical Family Finance.
Some Bridging Loans are not regulated by the Financial Conduct Authority.
Bridging Loans are by referral only.
