For many, it’s Back to School, and September is often a time to consider moving house and evaluating life priorities and expenditures. Autumn can be one of our busiest times of the year with first-time buyers entering the market plus people buying new homes or remortgaging. With less than four months until Christmas, now is the time to take action!
Team NewS
A huge THANK YOU to Sesame who have made a generous donation to Katharine House Hospice on our behalf. Inspired by our ongoing support for this amazing charity they collected £161 from staff donations, kindly matched by Sesame Bankhall Group to make a total of £322.
Katharine House Hospice has been providing physical, emotional, social and spiritual care for our community for more than 30 years. But they can only go on caring for local people with the help of our community. That’s why we’re proud to support such an incredible cause. Thank you Katharine House and thank you Sesame.
Stratton Thorpe Mortgage Solutions Limited is an appointed representative of Sesame Ltd which is authorised and regulated by the Financial Conduct Authority.
NEWS & UPDATES
Mortgage rates moving right way for borrowers: Rightmove
Rates currently continue to move in the right direction for new borrowers, with average five-year rates dipping below 6% for the first time in a month.
This is according to the latest weekly mortgage tracker from Rightmove which reveals that five-year products have reduced by an average of 0.2% and two-year products have dropped by an average of 0.1% over the past week, as the full effect of recent lender rate cuts starts to hit the market.
As Rightmove mortgage expert Matt Smith explains: “This week’s inflation data will be key in determining if the current trend continues or is brought to somewhat of a halt”.
He adds: ”The market remains volatile, and things can quickly change if presented with any surprising data. However, right now, the downward trend highlights the desire from lenders to become more competitive and attract one of the many motivated buyers we can see are still active in the property market.”
The latest data shows that the average five-year fixed mortgage rate is now 5.86%, up from 3.85% a year ago. The average two-year fixed mortgage rate is now 6.46%, up from 3.74% a year ago.
SOURCE - MORTGAGE STRATEGY
Base rate rises to 5.25 per cent but fixed mortgage deals should remain stable
The Bank of England has raised the base rate 14 times in a row to reach 5.25 per cent. Variable rate mortgage holders will pay more almost instantly, while fixed rate deals aren’t expected to be hiked – and could even come down.
The Bank’s Monetary Policy Committee (MPC) voted by a 6-3 majority to raise interest rates by 0.25 percentage points from 5 per cent to 5.25 per cent. Two members preferred to increase base rate by 0.5 percentage points, to 5.5 per cent, and one member preferred to maintain it at 5 per cent.
It was last at 5.25 per cent in February 2008, but is forecast to peak to just over 6 per cent before averaging just under 5.5 per cent over the next three years.
This is now the fourteenth base rate rise since the Bank started its hiking cycle in December 2021 from the historic 0.1 per cent low in a bid to curb soaring inflation which has actually dropped to 7.9 per cent in the year to June.
According to the Bank’s latest projections, inflation is set to fall further to around 5 per cent this year and return to its 2 per cent target by Q2 2025.
SOURCE - MORTGAGE SOLUTIONS
Huge jump in borrowers taking on 35-year mortgages
The number of borrowers taking out marathon mortgages has more than doubled over the last four years as people bid to bring down monthly home loan payments, data from Quilter shows.
Homeowners taking out a home loan with terms of 35 years or more hit a high of 88,059 in 2022 compared to just 40,471 in 2018 – a 117% increase, says the investment firm.
It points out that while increasing the term of a home loan brings down monthly mortgage payments, it also means the amount repaid in total rises.
The data comes after the Bank of England has raised the bank rate 13 times in a row since December 2021 to 5%.
SOURCE - MORTGAGE STRATEGY
Critical Illness Cover from Stratton Thorpe
Would you still have a mortgage or other personal debts to repay if you were seriously ill? Critical illness cover provides financial support and removes money worries at a time when the focus needs to be on your health. The money can cover everyday expenses but could also be used for private treatment, adapting your home to meet medical needs, or enabling loved ones to take time out of work to care for you.
Contact Stratton Thorpe today for a confidential free initial consultation and quote
IS your current mortgage deal ending before 1st MARCH 2024?
If your current mortgage deal ends before 1st March 2024, it's time to consider your remortgage. With remortgage applications, paperwork, valuations, and approvals taking between 8-12 weeks, sometimes more depending on your circumstances, now is the perfect time to start considering your options.
· 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
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