Better.co.uk, a prominent homeownership platform, is advising individuals looking to renew their mortgages to capitalise on a recent decrease in inflation.
In July, UK inflation saw a decline from 7.9% to 6.8%, a trend that experts interpret as a positive development for both aspiring and existing homeowners. This trend has been mirrored by significant high-street lenders reducing mortgage rates throughout August.
However, signs indicate that a slight uptick in inflation may be on the horizon when August’s statistics are revealed in September. This is largely attributed to a surge in wage growth.
With mounting pressure on the Bank of England to further increase the base rate in response to wage growth and the recent slight rise in two and five-year Gilt and SWAP rates (the benchmarks that lenders use to price mortgage products), it is plausible that mortgage lenders might slightly elevate their fixed rates in the near future.
Amanda Aumonier, Head of Mortgage Operations at Better.co.uk, offered her insight and advice on the situation: “Major lenders have recently reduced fixed rates. In the event that the Bank of England decides to raise the base rate in September, variable rates are likely to climb, and fixed rates could also experience an increase.”
Aumonier continued to advise those in need of remortgaging within the next six months to consult a mortgage broker promptly. Similarly, individuals in the process of home purchasing are encouraged to consider engaging with a mortgage broker at this juncture.
Established in 2016, Better.co.uk has played a significant role in facilitating $30.9 billion in home loans. Furthermore, the platform has delivered cumulative coverage exceeding $7 billion through its insurance services and successfully secured over $400 million in equity capital.