Intensified Competition Among Mortgage Lenders Ahead of Bank of England Decision
Are you a homeowner worried about rising mortgage rates? You’re not alone. With the Bank of England expected to make a key decision on interest rates soon, competition between mortgage lenders has intensified. This could mean good news for those looking to secure a new fixed-rate mortgage.
According to a recent report by the Bank of England, about three million households are set to see their mortgage payments rise in the next two years. This includes 400,000 mortgage holders who are facing significant payment increases. Renters are also feeling the pressure from the cost of living and higher interest rates.
However, with lenders making reductions to the cost of new fixed-rate mortgages in recent days, there may be some relief on the horizon. While mortgage rates are still higher than they have been in the past decade, the prospect of a lower Bank of England rate has led many lenders to lower the rates they charge customers.
If you’re looking to make your mortgage more affordable, there are a few strategies you can consider. Making overpayments while you’re still on a low fixed-rate deal can help you save money in the long run. Moving to an interest-only mortgage can also keep your monthly payments affordable, although you won’t be paying off the debt accrued when purchasing your house. Additionally, extending the life of your mortgage to a 30 or even 40-year term can help lower your monthly payments.
Overall, the decision on interest rates by the Bank of England remains on a knife-edge. However, with lenders making moves to lower mortgage rates, now may be a good time to explore your options and potentially secure a more affordable mortgage deal.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. The content is based on general research and may not be accurate, reliable, or up-to-date. Before making any financial decisions, it is recommended to consult with a professional financial advisor or conduct thorough research to verify the accuracy of the information presented. The author and publisher disclaim any liability for any financial losses or damages incurred as a result of relying on the information provided in this article. Readers are encouraged to independently verify the facts and information before making any financial decisions.