The latest data from financial data company Moneyfacts has revealed that average mortgage rates have fallen for the first time in over two months. We've seen a steady rise in average mortgage rates in recent weeks following the Bank of England's decision to raise the Bank of England base rate in June, the 13th consecutive rise. The decision to raise the base rate by 0.50% means it now stands at 5.00%, the highest it has been since 2008. Analysts recently predicted that the Bank of England could increase the base rate further, up to around 6.00% towards the end of this year and above 6.50% by Spring next year.
However, recent inflation figures for June came in much lower than expected, meaning markets are now predicting that the Bank of England base rate is likely to peak lower than previous estimates. This is further backed up by recent data from financial data company Moneyfacts that shows that average mortgage rates on both 2 and 5-year fixed-rate deals have fallen. Average 2-year fixed-rate deals have fallen from 6.81% to 6.79% and the average 5-year fixed-rate deals have fallen from 6.33% to 6.31%. For an up-to-date commentary on interest rates and the latest predictions, check out our article 'When will interest rates rise (or be cut) - latest predictions'.
How to get the best mortgage rate
Firstly, check our regularly updated article 'Best mortgage rates in the UK' where we list the best mortgage deals available in the UK. We list the top 2-year and 5-year fixed-rate mortgage deals as well as the best tracker rates from across the whole mortgage market. Additionally, you should consider speaking to a qualified mortgage broker to get access to the widest range of mortgage deals, as not all deals are available by applying to a lender directly. If you do not have a mortgage broker, you can find one in your local area using VouchedFor*, a directory service that gives you access to thousands of qualified financial professionals that have been extensively vetted.
Help if you are struggling with your mortgage repayments
If you are struggling with your mortgage repayments or are worried about how you will afford your mortgage when you come to remortgage, you should first contact your lender. Lenders are under government guidance to act sympathetically and support borrowers who are struggling with mortgage costs, particularly where they may be vulnerable. Our article, 'How to save money on your mortgage' has additional tips if you are struggling with repayments.
You can also access support and guidance from the following organisations by clicking on the links below:
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