March was another positive month for homeowners securing a new mortgage or remortgage. The market remained stable with good signs of recover after the turbulence of last autumn. April looks set to follow suit with many clients completing on new properties and renewals. We wish them all every happiness.
Don’t forget, many of the mortgage options we showcase are exclusive to mortgage brokers and subject to individual circumstances. We can help you to secure 95% Loan to Value (LTV), fixed-rate, flexible, tracker, offset, discounted deals and many more. Contact us to book your free no-obligation initial consultation with flexible appointments across Oxfordshire or online meetings.
Wishing you all a very happy Easter, hope you have a fun (and treat!) filled time 🐣🐰
Team News
Once again we are supporting Katharine House Hospice Moonlight Walk. Here are Julian, Peter, Olga & Helen at our sponsored Mile 3 marker from Bloxham Grove Farm to Longford Park. The 2023 walk theme is 'Going to the Movies' Join friends and family for a fun-filled six- or ten-mile walk under the stars. Dress up as your favourite movie character - anything from Charlie Chaplin or Snow White to Captain America or the Minions and everything in between!
See our JUST GIVING PAGE and donate to support an amazing local charity
We’re growing… again!
Keep watching this space for news about how the Stratton Thorpe team is expanding once again! We can’t say anything for now…. but needless to say, we’re very excited 😃
NEWS & UPDATES
fixed rates drop to six-month low
The average two-year and five-year fixed-rate mortgages are at their lowest level in six months, according to the latest analysis of mortgage trends by Moneyfacts.
Across all loan-to-values, borrowers can now expect to pay an average 5.32% for a two-year fix and 5% for a five-year fix, as rates continue to come down from the highs witnessed after the fall-out of last year’s mini-Budget.
However, the 0.32% gap between the two rates is the biggest it’s been for 15 years. The last time the margin between a two and a five-year fix was that big was in February 2008 when a gap of 0.36% was recorded.
While fixed rates are coming down, it’s a completely different story with standard variable rates (SVRs). At 7.12%, this has breached 7% for the first time since October 2008 and is now the highest since April of that same year, when it was 7.16%.
Moneyfacts says this could come as a shock to borrowers whose low fixed-rate deals are about to end.
SOURCE - MORTGAGE STRATEGY
Life can throw curveballs at us when we least expect it, so it's essential to have a plan in place.
Life insurance provides peace of mind that your loved ones will be safe financially if you are not around. A lump sum payment can pay vital bills like a mortgage, rent, or help with raising children. Cover will entirely depend on your circumstances and how much your loved ones need.
Contact Stratton Thorpe today for a confidential free initial consultation and quote.
Swap rate trends suggest current mortgage pricing is here to stay
Currently, the two-year swap rate sits at around 4.1 per cent, the same level that the markets expect the BBR to be in 24 months. The pricing of a two-year fixed rate mortgage is calculated using the two-year swap rate plus a product margin which varies subject to the customer’s circumstances, property, and loan to value (LTV).
The sharp and sudden increase in swap rates after the mini Budget was detrimental to mortgage lenders as they were unable to immediately reprice their mortgage products.
This meant that while swap rates were at their highest point, lenders continued to offer their current range of mortgage products at a loss or a much-reduced margin. Once lenders were able to reprice, however, mortgage rates in the market were up to five times higher than they had been prior, in the case of a typical two-year fixed rate product offered by a high street lender.
Generally, inflation levels have been improving in the last few months and are expected to continue to fall this year. This will support a market view that the Bank of England may not raise rates by much further in the short-term, with the BBR likely reaching its terminal rate in the first half of 2023, leading to a gradual fall in swap rates across maturities.
While markets anticipate mortgage rates to continue decreasing this year from the highs of Q4 last year, we do not expect to see them return to the low levels to which we have become accustomed over the past decade.
Indeed, it is possible that the mortgage rates we are seeing now may in fact be the new norm for the foreseeable future
SOURCE - MORTGAGE SOLUTIONS
IS your current mortgage deal ending before 1st OCTOBER 2023?
It's time to start thinking about remortgaging. It's worth shopping around for a new rate as you can secure a deal up to six months in advance. Stratton Thorpe Mortgage Solutions provide:
· Free no-obligation initial consultations
· Flexible appointments at a time & location to suit you
· Simple, hassle-free service - we take care of everything to ensure a smooth transition to your new mortgage
If you have longer to run on your mortgage, switching rates may still be worth considering. This may involve paying exit fees or early repayment charges on your outstanding loan. However, if you save significantly by switching, these extra charges could be worth considering.
House prices increase by over 20% in three years, with Wales recordinG strongest growth
New research has found that UK house prices have risen by 20.4% (£48,620) between January 2020 and December 2022, compared to just 7.8% over the previous three years.
The data from the Halifax House Price Index shows that Wales recorded the strongest growth, up 29.3% from £168,101 to £217,328.
The study also found that the average price of larger homes grew at almost twice the rate of smaller properties.
Detached houses saw the largest price increase of 25.9% or £93,345, with Wales seeing the strongest growth of 33.8% or £86,675.
Five UK regions saw the average price of a detached property rise by over £100,000. In contrast, demand for smaller properties in urban areas fell during the pandemic, with the average price of a flat increasing by just 3.8% in London, compared to 23.5% in the North West of England.
Semi-detached and terraced houses saw increases of 23.1% (£55,361) and 21.1% (£38,743) respectively over the last three years, with the South West and Wales seeing the strongest growth in semi-detached and terraced homes respectively.
SOURCE - THE INTERMEDIARY
WHY CHOOSE STRATTON THORPE MORTGAGE SOLUTIONS?
Free no-obligation initial consultations
Over 50 years of industry experience.
Located in Oxfordshire, covering Banbury, Brackley, Bicester, Kidlington, Oxford and all surrounding areas
UK-wide coverage remotely via telephone and video appointments.
Access to a vast range of rates, including broker-exclusive deals and options
Full guidance through the home-buying process at every stage. Specialists in remortgage, Help to Buy, new homes, first-time buyers, shared ownerships and much more
Costs of moving appointments available
Flexible appointments to suit you in your home, your workplace or a chosen location.
Tailored advice service specific to your own individual situation. Protection experts
Referral incentive scheme available
Search and compare quotes for products based on an analysis of a number of insurers.
CLIENT FEEDBACK
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