Nationwide has recently reduced its fixed mortgage rates by up to 0.6 percentage points for first-time buyers, relocators, and customers who remortgage. This could be a great option for those looking for a base-rate follow-up mortgage with no early repayment fees, allowing them to switch to a fixed rate if prices fall even lower. Nationwide's real estate company is also reducing its fixed mortgage rates by up to 0.3 percentage points for new and existing borrowers with low amounts of capital or a small deposit. Mortgage lenders are closing operations due to the volatility of the pound sterling in international currency markets and the prospect of the interest rate rising to 6% next year. Lenders are continuing to attack their fixed-rate mortgage transactions as competition returns to the market.
Mortgage borrowers who follow standard monitoring and variable rate operations will see their monthly repayments increase after the Bank of England raised the bank rate today by 0.5 percentage points, from 3.5% to 4%. This follows a mortgage summit between Chancellor Jeremy Hunt, the FCA, and representatives of the mortgage industry in December. The interest rate on an adjustable-rate mortgage will normally change when the Bank of Canada raises or lowers its one-day rate. However, while the new products include cashback incentives and free trials, the rates represent an increase of up to 0.26 percentage points compared to Virgin's previous fixed-rate offers. Payment problems are likely to arise when borrowers cancel current low-fixed-rate mortgages and have to pay their lender's much higher standard variable rate (known as SVR, which currently has an average of 6.90%) or remortgage with a higher fixed-rate offer. Further increases in interest rates are expected to address the dramatic increase in the inflation rate in the United Kingdom, which will have a knock-on impact both on mortgage rates and on the affordability of new mortgages. Virgin Money is reducing its fixed mortgage rates exclusively for brokers and offers a five-year fixed solution of 3.79% (65% of LTV), compared to 3.9%.
First-time buyers will have to go an even steeper path in terms of demonstrating sufficient affordability compared to lenders' more expensive mortgage rates. The figures released today by HM Revenue and Customs also highlight how higher mortgage rates are affecting the housing market. Not only do buyers need to compare current mortgage rates in Halifax, but they must also choose between an open and a closed mortgage. Skipton Building Society and Gen H Mortgages are the latest lenders to reduce fixed mortgage rates, as an online broker reports a record month in home loan inquiries. So, are Halifax mortgage rates competitive with other lenders? The answer is yes! Halifax offers competitive rates that can help you save money on your monthly payments. However, it is important to compare different lenders' rates before making a decision so that you can find the best deal for your needs.