To kick off the Spring I wanted to give you an insight into the current mortgage world and how things are looking for the months and year ahead.

Due to the conflict in the Middle East recently, there has been significant changes daily in interest rates which has saw the average deals available with UK Lenders rise into the mid 5% mark for higher Loan to Value options and around the high 4%/low 5% for lower Loan to Value options.

There is a potential for further rate rises going forward, if inflation sees a slight upward trend and the conflict continues, however depending on the economic markets, we may see rates decrease slowly in the latter half of the year. But, as you will be aware, things can change in an instant in the world so there’s no way of completely knowing for sure.

So, if you’ve been waiting for rates to reach a lower level before making a move on your first home purchase or remortgaging, it might be a prolonged wait. You may want to consider the option of entering the market sooner or switching deals earlier.

For prospective homebuyers, the current period could present a favourable opportunity due to reduced housing demand amid higher rates. Although this might result in higher monthly repayments or opting for a more budget friendly property, the chances of being outbid by other buyers are diminished.

If you’re a homeowner contemplating a remortgage onto a new deal, it’s advisable to explore current rates. If you’re within the 6 month window before your existing deal expires, securing a rate now allows flexibility. If you remortgage now and rates decrease during the few months, you can still reapply for a more favourable deal before it’s due to start, whilst locking in a rate now provides a safety net if rates do take an upward turn.

There’s no certain way of knowing how it’s going to pan out over the next few months, even years, so making decisions on whether to buy a property or remortgage with a shorter or longer term fixed rate means it’s more of a personal choice and needs tailored to your own plans for the short and medium term.

Remember that the actual interest rate is only one factor of how much you will pay for a mortgage, the level of borrowing and the term of your mortgage also has a direct impact on your monthly payments, so a tailored solution can sometimes mean the overall increase in rates isn’t as hard hitting as you may think. It’s all relative to your own situation and borrowing requirements.

The great thing about using a mortgage broker to arrange any of the above is they will take the stress and hassle away from you when arranging the mortgage by discussing what’s important to you including the type of rate, length of mortgage term and your desired monthly budget for a mortgage, so they can provide a tailored solution specific to your circumstances, with this in mind, you may find that it’s not as much as you were thinking.