Latest market news

What next for interest rates?

December, 16th 2016

With the final chapter of 2016 drawing to a close, how do mortgage interest rates currently stand? From the vote to leave the EU, to various monetary policies introduced by Mark Carney, to the introduction of ever more complex mortgage lending rules, the UK housing market has seen its fair share of change and uncertainty this year. But what does this mean for interest rates now?

Wholesale interest rates (swap rates) partly dictate how much banks can lend and at what rates. They have fallen over the course of 2016 as expectations of a Base Rate increase faltered, and the Bank of England instead decided to cut the Base Rate to 0.25%. Swap rates were further impacted by the vote to leave the EU.1

The Bank of England's Mortgage Lenders and Administrators Statistics report recorded that rates on residential mortgages fell by 8 bps in Q3 to 2.47% - the lowest rate the housing market has ever seen.2 After the Base Rate was cut to 0.25%, most lenders responded by cutting their Standard Variable Rates (SVRs) as well as headline rates. This comes after the political upheaval and market changes of 2016 and the uncertainty it brought with it; encouraging lenders to compete more fiercely for market share.

However, swap rates have increased considerably since September, suggesting a building pressure on lenders to increase their rates on fixed rate mortgages, although few have yet done so.

With some lenders withdrawing their record low mortgage deals, a few commentators have speculated that we have already seen rates hit the bottom 3; market uncertainty and rising swap rates will make it hard for lenders to maintain their low interest rates. Nonetheless, currently, there are still great rates available.

It is, however, always important to remember that the headline rate of a mortgage should not be used as the sole indicator of whether a mortgage is right for you. It is important that you take into account the fees and charges included, and whether or not the mortgage terms suit your circumstances. This is especially important when arranging a large or complex mortgage, where a bespoke product is created to help you achieve your property investment goals.

If you would like to arrange a large or complex mortgage on a residential or commercial property and want to seek advice on the best deal for you, call us on 020 7519 4985 or send us an email. No matter how large or complex your mortgage requirements one of our specialist Mortgage Managers would be happy to talk through your options with you.

 

1 http://www.telegraph.co.uk/personal-banking/mortgages/best-fixed-rate-mo...

2 http://www.financialreporter.co.uk/mortgages/mortgage-rates-fall-to-new-...

3 https://www.ft.com/content/17e7d980-bbcb-11e6-8b45-b8b81dd5d080

  • This Month's Top Fixed Rate

    Fixed rate
    Initial rate: 1.09%

    Period: 2 Year

    Rate will revert to the lender's standard variable rate currently 4.94%
    The overall cost for comparison is 4.33% APR

    1.09%

    More info
  • This Month's Top Variable Rate

    Variable rate
    Initial rate: 0.99%

    Period: 2 Years

    Rate will revert to the lender's standard variable rate currently 3.74% which will not go below a floor of 3.49% thereafter
    The overall cost for comparison is 3.36%

    0.99%

    More info

    Get This Rate


Some of this month's top interest rates are listed above; the actual rate will depend on your circumstances. Please note that this information does not contain all the details you need to choose a mortgage, ask one of our advisers for a personalised key facts illustration on 020 7519 4900. The rate displayed may become out of date at short notice.

Latest Articles/News

Case Studies

Need to remortgage a portfolio of Buy to Let properties? We have the bankin... READ MORE

latest/related news

Rising mortgage interest rates in the UK are hitting the headlines. A poten...READ MORE

press release

Changes to lending regulations – which are due to come into effect on 30th...READ MORE

press coverage

Broker launches ‘How to’ guide to help portfolio landlords with new rules

What Mortgage ,October, 12th 2017READ MORE

LML BROCHURE

Download our brochure to find out more about Largemortgageloans.com and what we can offer

Click to Download

Rate Alert

Client Testimonials

"I am very pleased with the service. My Mortgage Administrator was excellent,...
READ MORE

JH, JH

"It was all dealt with very quickly and methodically. My Mortgage Manager and...
READ MORE

CPD, CPD

"Everything was fine. Every time I had a question my Mortgage Manager explained...
READ MORE

DH, DH

"Excellent service from start to finish. My Mortgage Manager was exceptional....
READ MORE

NWK, NWK

Logo
STAY CONNECTED WITH US:
  • Facebook
  • Twitter
  • Linkedin

London Office

Tel: 020 7519 4900
Fax: 020 7519 4910
Email: info@largemortgageloans.com

Guernsey Office

Tel: 01481 234527
Fax: 020 7519 4910
Email: info@largemortgageloans.com

YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT
Changes in the exchange rate may increase the sterling equivalent of your debt

Largemortgageloans.com is a trading name of Largemortgageloans.com Ltd, 12 Pepper Street, London, E14 9RP which is authorised and regulated by the Financial Conduct Authority. We are entered on the Financial Services Register No 302228 which can be viewed here: www.fca.org.uk/register/. The Financial Conduct Authority does not regulate some aspects of buy to let mortgages, overseas mortgages and tax advice. Help and advice in regards to mortgages is available at www.moneyadviceservice.org.uk

Largemortgageloans.com Limited is registered with the Guernsey Financial Services Commission, reference number: 2269418, as a Non-Regulated Financial Services Business.

A typical fee of 1.17% of the mortgage amount is payable. Of this, 20% is payable on application and the balance of 80% on completion. For example on a mortgage application of £300,000 the fee would be £3,510 in total. Of this, £702 (20%) would be payable on application and the balance of £2,808 (80%) on completion. The total fee is non refundable. We may also be paid commission from the lender. The guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK. Calls may be recorded for training and monitoring.
You may have to pay an early repayment charge to your existing lender if you remortgage.

Largemortgageloans.com Ltd Registered in England and Wales No: 5070990 Registered Address: Bridge House, London Bridge, London, SE1 9QR. 2005-2017. All rights reserved.