IT SHOULDN’T really be a surprise after Trussonomics saw the Bank of England forced to raise interest rates from next to nothing to 4%, but across Berkshire people have been looking to remortgage.
New data from Better.co.uk shows that trying to find new mortgage rates is a priority, especially if people are coming to the end of their fixed rate deals, some of which will have been at historic low levels of under 2%.
The website said that comparing Google search data between November 2021 and November 2022, Reading has seen an +494% increase in searches for mortgage rates, with Bracknell, Slough and Luton seeing +556%, +529%, +700% respectively.
This tracks with the rest of the UK where overall searches surrounding mortgage rates have increased by +508%, up to 110,000 average monthly searches.
And Better.co.uk says that nearly two thirds – 60% – of all mortgage rate searches have a negative sentiment.
Sam Amidi, Head of Mortgage Sales at better.co.uk, said: “Mortgage rates could keep increasing in 2023 as the Bank of England attempts to manage inflation by raising its base rate. It’s been speculated that the base rate, could rise as high as 4.8% in Q3 of 2023.
“Mortgage rates may finally begin to decrease again in 2024.
“With mortgage rates on the rise and repayments becoming more costly, buyers should ensure they shop around for the right mortgage deal. Potential buyers should also consider that they put down as big a deposit as possible, as this will increase their access to better mortgage deals with lower interest rates.”
Sam said that those most affected would be first-time buyers hit by the cost of housing, expensive monthly payments and the cost-of-living crisis, as well as those coming to the end of a low fixed term rate.
“Anyone fortunate enough to have locked into a low mortgage rate in the last few years will face the stark difference in interest rates when they go to remortgage,” they said.
“Rising interest rates will make it more expensive to borrow and difficult to secure an affordable mortgage deal. This may deter many homebuyers from looking to buy in the current market. As mentioned above, it is also expected that house prices will drop, meaning that sellers may not get what they think their home is worth.”
Better.co.uk says it has produced some advice, which can be found at: https://better.co.uk/press/uks-biggest-mortgage-concerns
