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Sunday, June 16, 2024

Decrease in July Inflation (6.8%) Spurs Mortgage Rate Considerations: Insights for Homeowners

Prominent homeownership platform Better.co.uk is advising individuals seeking mortgage renewals to seize the opportunity presented by a decline in inflation rates.

The month of July witnessed a reduction in UK inflation from 7.9% to 6.8%, a shift that industry experts view positively for prospective and current homeowners. This trend aligns with key high-street lenders lowering mortgage rates during August.

However, indications are pointing towards a potential slight uptick in inflation when September’s data reflects August’s numbers. This projection can largely be attributed to an increase in wage growth.

As the Bank of England faces mounting pressure to raise the base rate in response to this wage growth, combined with minor elevations in current two and five-year Gilt and SWAP rates (fundamental indicators influencing how mortgage products are priced), mortgage lenders might marginally raise their fixed rates in the near future.

Amanda Aumonier, Head of Mortgage Operations at Better.co.uk, offered prudent advice: “Key lenders have reduced fixed rates in the last two weeks. If the Bank of England increases the base rate in September, variable rates will increase and fixed rates may also rise. If you need to remortgage in the next six months, it’s worth speaking to a mortgage broker now. If you’re in the process of buying a home, you should also consider speaking to a mortgage broker now.”

Since its inception in 2016, Better.co.uk has facilitated a staggering $30.9 billion in home loans and has extended cumulative coverage of over $7 billion through its insurance services. Moreover, the platform has secured a remarkable $400 million in equity capital through successful fundraising initiatives.

Sam Allcock
Sam Allcockhttps://businesslancashire.co.uk/
Sam Allcock is a highly regarded digital entrepreneur with over 20 years’ experience in online marketing for some of the World’s biggest brands. He has extensive knowledge and experience in SEO and digital marketing. He is based in Cheshire but has an interest in all things going on in the North West and enjoys contributing local news to the site.
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