Interest rates remain unchanged. That’s good, right?
On Thursday 2 November, the Bank of England voted to maintain the current interest rate at 5.25%.
Is this a welcome decision? We ask Ryan Radford, our Expat Mortgage Expert, to explain what this means for expats with UK property.
“The decision by the Bank of England to hold interest rates, for the second month in a row, is very welcome. The thought of another mortgage payment rise this close to Christmas would have been very difficult for most UK property owners. We all hope it signals a period of stability where rates (at worst) don’t change, and at best possibly decline slightly.”
“What homeowners do need to consider is the general feeling within the industry that interest rates will be around the 5% level for the long term. That’s certainly what the Bank of England has suggested.”
Even with a short period of stability, we have seen lenders starting to reduce their rates for new borrowers, which is a welcome relief for anyone coming to the end of their fixed term.
As Ryan comments:
“Because we have access to the whole mortgage market, I can see how lenders are reacting to any decision made by the Bank of England. I can check your current rate against the general market and can see whether your mortgage lender is still the best option for you. At the moment, many of my expat clients with rental properties in the UK are looking for longer term fixed rates so they don’t have to worry about the impact of any interest rate instability. If the rent covers the mortgage, with enough for repairs and a profit, they’re happy.”
Industry experts agree. Given many renters are still finding the cost of living difficult, landlords are happy to maintain rental costs at a reasonable level if they know their mortgage isn’t going to increase over the long term.
Inflation, job security, energy price rises, house prices, and even the potential for a general election within the next twelve months, could all have an impact on what the Bank of England do next.
Our advice? Talk to an expert who can help you work out your own priorities for the property and then match your mortgage accordingly.
But then we would say that!
Would you like to talk to Ryan about your UK mortgage and property options? Contact Ryan direct today with a call or WhatsApp to 058 513 9728.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.