Fixed mortgage rates fall while Standard Variable Rates rise to 7%

Many clients have held off remortgaging as the market has been so volatile, fearing fixing too early could result in securing a rate only for the market to stabilise and rates to reduce.

The good news is...

There are still plenty of attractive rates available. We have recently seen 5-year fixed rates drop below 4%. Compare this to the average Standard Variable Rate (SVR) that now stands at an average of 7.13% across the top 10 lenders.

Choose a broker that looks after your best interests

The team at Cleerly offer a system called PAMM: the Proactive Mortgage Management System. PAMM constantly reviews the rate you are paying vs the rates available to make sure you get the best deal.

In a market where rates are changing daily the best advice is to engage with a specialist broker as soon as possible. Even if the best course of action for you is to sit tight, our trained consultants can agree a contact strategy with you to make sure you don’t miss out.

Reuters recently polled analysts and reported that home prices will fall less than first feared in 2023 as a resilient job market and easing fears around a recession soften the expected blow.

It did note that it expected those with mortgages to be hit by a further Bank of England (BOE) base rate increase of 0.25% at the end of March before pausing. It is also expected that after continuous price increases, house prices will fall by 2.4% in 2023 far shallower than the 4.7% predicted in November.

Sat Singh, Executive Director at Cleerly had this to say:

“The lending markets do appear to be stabilising and lenders have a good appetite to lend resulting in some attractive rates. This coupled with increasing SVR’s does mean it’s imperative clients review the remortgage options available.”

He continued:

“Another point worth noting is that house price reductions can impact the Loan to Value (LTV) of your mortgage. This metric is used by lenders when pricing products and can have a huge impact on the rates available to you.”

We're confident we can help you

If you are looking at a new purchase or to remortgage at the end of your current deal, speak with one of the Cleerly team as soon as possible.

The advice may be to hold tight, but 10 minutes of your time could help form a plan that could save you a lot of money and time in the future.

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