ISSUE NO 18
August 2024
Welcome to our monthly Newsletter. Each edition will give you insight to the world of Mortgages and Housing.
We hope you enjoy!
The Inspired Team x
MARKET UPDATE:
- What’s happening with house prices?
- House asking prices dropped in July due to General Election uncertainty, with the average asking price of a home in Great Britain at £373,493. The number of Sales is currently 15% above this time last year which is great news.
- Are Interest Rates falling or rising?
- The Bank of England met on 1st August. Good news!! They cut the rate to 5.00%.
- This was earlier than some experts suggested so amazing news.
- Below is a chart from Capital Economics forecasting that rates could be as low as 3% by the end of 2025 or early 2026.
- Inflation
- In June 2024, the UK’s annual inflation rate remained the same at 2.0% which is the target level. This is the lowest it’s been since April 2021.
- Mortgage Rates
- Mortgage Interest rates continued to decrease in July. The best 2 year fixed deal currently sits at 4.39% and the best 5 year fixed rate is 4.03% (based on 60% loan to value)
NEW BUILD SCHEME:
Ever fancied buying a New Build Home? We are pleased to be able to offer our clients ‘Own New’ Rate Reducer.
How does it work?
The Builder/Seller offers a 3% or 5% cash incentive which goes to the mortgage lender and reduces the amount you pay for the initial ‘Fixed’ Period. For example, if you bought a New Build with 15% deposit and the mortgage was £350,000 over a 35 year term, the lenders rate would be 5.08% costing £1,784 a month. With the Rate Reducer, the rate could be 2.27% costing £1,208 a month. This is a saving of £576 a month!
If you’d like to know more about the scheme, please reach out and we can discuss further.
