Mortgage News

Last updated: 17th August 2022

Cambridge BS increases dominance on first-time buyer chart.

On Monday, research from real estate company Rightmove found that property prices have started to slow. However, this was attributed to seasonal trends and not economic factors.

For first-time buyers who can afford a new home, and are wishing to get onto the property ladder, now could be the perfect time. To help not only first-time buyers, but remortgage borrowers and homemovers too, we have listed some of the lowest fixed mortgage rates on the market. In addition, if these offers do not suit you, we have listed alternative products, with some making their way onto our best buy table.

Prices have fallen for the first time this year.

The average UK property price has fallen for the first time this year, according to the latest Rightmove House Price Index. However, the real estate company has attributed this to a seasonal trend and does not reflect broader economic factors.

“A drop in asking prices is to be expected this month as the market returns towards normal seasonal patterns after a frenzied two years, and many would-be homemovers become distracted by the summer holidays,” said Tim Bannister, Director at Rightmove.

The latest figures have priced the average home in the UK at £365,173 in August, almost £5,000 less than what was recorded the previous month.

The latest data from the Moneyfacts UK Mortgage Trends Treasury Report shows that the average length of time for which mortgages remain on the market has plummeted to a new record low. Mortgage products now only have an average shelf life of 17 days – four days fewer than our previous recorded low of 21 days (last seen in June 2022).  

This reflects the speed at which providers are updating their offerings, but also means that those looking for a new mortgage have the shortest length of time we have ever recorded to try to secure their deal of choice.

It comes at a time when the FCA urged eligible borrowers last week to consider their mortgage options and switch to a more cost-effective deal to save money where possible.

It means prospective borrowers may need to move swiftly if they are to follow recent FCA guidance and are hoping to alleviate some of the pressure of the cost of living crisis by reducing their outgoings with a new mortgage deal.

The Bank of England (BoE) has voted to increase the base rate by 50 basis points today, the highest increase in 27 years. It now means the base rate stands at 1.75%.

The decision comes amid a backdrop of low economic growth but high inflation which is expected to hit 11% in October.

Currently inflation is recorded at 9.4%, meaning a typical basket of goods and services was 9.4% cheaper than one year prior.

The Monetary Policy Committee voted by a majority of eight to one majority to raise the rate to 1.75%. The minority vote preferred to increase the base rate by 25 basis points.   

The last time the base rate exceeded this figure was in December 2008, when it sat at 2.00%. It was promptly lowered by 50 basis points the following month in January 2009.