2023 Interest Rates

 

You may have heard that average mortgage interest rates are now below 6%. It is important to understand what this means. The media message refers to AVERAGE interest rates which I must say is a misleading generalisation. No-one arranges an “average interest rate” when they sort out their mortgage and I don’t advice people based on “average mortgage interest rates”. In reality there is no such thing as an "average interest rate" that applies to someone's mortgage! it is a meaningless generalisation.  

 

I have to advise people on the most suitable rate for their circumstances and that has to be the LOWEST possible cost that they can obtain. 

 

The point is that for many people with a good credit profile interest rates could be, FAR lower than the media are suggesting. 

 

First Time Buyers. There are a many High Street lenders offering first time buyer mortgages with a 20% deposit rates that are currently between 4.62% and under 5% and almost as many offering rates well below 5% for first time buyers with just a 10% deposit. 

This is extremely important as these rates are very competitive in comparison with those on offer in the summer of 2023. 

 

Home movers Home movers are considered lower risk by lenders so 20% equity could mean as low as 4.57%. Someone with 40% equity or more could potentially get as low as 4.29%! 

 

So why is this important? It is extremely important because the housing market is in the doldrums at the moment and if people think that interest rates are still high they will put off looking at their finances. I want people to know that things are not as awful as the media will have you believe and that we the cost of moving or refinancing may not be as great as expected.  

 

Please be aware I am not offering advice here as rates are subject to change and a client meeting lender criteria. 

 

The FCA might think that I am advertising here, so I am including this regulation text: