Will it be a happy new year?
December 31st, 2022
The mortgage market rarely sits still so one would expect announcements next year on how banks and building societies aim to stimulate the mortgage market.As I write this, the Bank of England have announced yet another interest rate rise the ninth in the last year.
However, for interest rates not directly linked to the base rate (like trackers) rates have gradually been decreasing something the mainstream press seem to have forgotten to report!
Since the chaotic period of Liz Truss’ reign and the spike in rates, there have been three mortgage interest rate reductions!
This has brought fixed rates down to the mid 4% range from the height of around 6%.
Still higher than we’d all like but a significant improvement.
So, with the easing of rates for the time being, what else is on the horizon for those with mortgages or looking to take one out in 2023?
Well, with the closure of Help to Buy which allowed people to purchase properties that may not have been available had there not been the deposit incentive from the Government some lenders, Nationwide being one, have developed a product to try to fill this void called the Deposit unlock scheme.
This requires a minimum 5% deposit for a new build property and is available to first time buyers and subsequent movers.
Normally at this high loan to value there is a requirement for an indemnity fee to be paid (a type of insurance to protect against negative equity) but this is waived in these cases.
There are also incentives out there for “greener” homes, cash backs for first time buyers and another scheme called First Homes introduced by the Government to assist first time buyers to purchase a new build home at a large discount.
The mortgage market rarely sits still so one would expect announcements next year on how banks and building societies aim to stimulate the mortgage market.
We have our fingers on the pulse and are ready to pass on new developments to our clients so if you’d like to discuss anything relating to your mortgage then please feel free to call and speak with one of our advisers.
For now, it leaves me and the team here at Compass Mortgages to wish you all a very merry Christmas and a happy and healthy 2023.
However, for interest rates not directly linked to the base rate (like trackers) rates have gradually been decreasing something the mainstream press seem to have forgotten to report!
Since the chaotic period of Liz Truss’ reign and the spike in rates, there have been three mortgage interest rate reductions!
This has brought fixed rates down to the mid 4% range from the height of around 6%.
Still higher than we’d all like but a significant improvement.
So, with the easing of rates for the time being, what else is on the horizon for those with mortgages or looking to take one out in 2023?
Well, with the closure of Help to Buy which allowed people to purchase properties that may not have been available had there not been the deposit incentive from the Government some lenders, Nationwide being one, have developed a product to try to fill this void called the Deposit unlock scheme.
This requires a minimum 5% deposit for a new build property and is available to first time buyers and subsequent movers.
Normally at this high loan to value there is a requirement for an indemnity fee to be paid (a type of insurance to protect against negative equity) but this is waived in these cases.
There are also incentives out there for “greener” homes, cash backs for first time buyers and another scheme called First Homes introduced by the Government to assist first time buyers to purchase a new build home at a large discount.
The mortgage market rarely sits still so one would expect announcements next year on how banks and building societies aim to stimulate the mortgage market.
We have our fingers on the pulse and are ready to pass on new developments to our clients so if you’d like to discuss anything relating to your mortgage then please feel free to call and speak with one of our advisers.
For now, it leaves me and the team here at Compass Mortgages to wish you all a very merry Christmas and a happy and healthy 2023.
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