Lenders change the rates of their mortgage products regularly. However, in the last few months, they have changed drastically due to the Base Rate increases.
On 22 June, the Base Rate increased to 5% from 4.5% in March.
Rightmove has a useful tool whereby you can access weekly updates on the current mortgage interest rates.
Below is a table of the current interest rates based on a 15-25% deposit:
*The rates are based on home buyers on a repayment mortgage, so will therefore be slightly different to a BTL interest-only mortgage. It’s advised to speak to a mortgage broker for actual rates for your individual circumstances.
When could interest rates start to drop?
Rightmove suggests that we could see the Base Rate peak at around 5.75% before it starts to come down
The Bank of England’s Monetary Policy Committee meets about every six weeks to discuss and vote on whether interest rates should go up or down or stay the same.
The next decision on interest rates will be announced on the 3rd of August 2023.
Investing in off-plan property now can be a great idea, as the completion date is typically in 1 to 2 years. This allows you to secure a property below market value and benefit from lower mortgage rates when it comes time for payments. As it is predicted that by 2025, mortgage and interest levels will return to lower levels.
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