Welcome to our latest market update
This month, we discuss the recent Bank of England decision and the recent repricing moves made by lenders.
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For the 5th consecutive time, the Bank of England has decided to hold interest rates this month.
This has been accompanied with a general rate raises as lenders react once again to Middle-East uncertainty.
The Bank of England has held interest rates at 3.75% for the fifth consecutive meeting following a 6-3 vote by the Monetary Policy Committee.
Governor Andrew Bailey once again cited uncertainty surrounding high energy prices stemming from the recent Middle East conflict and inflationary fears toward the end of the year as the rationale behind the decision. This comes as the on-again-off-again nature of the US / Iran war drive wild volatility in the price of Oil per barrel.
The decision comes after lower than expected inflation last month. The Bank’s goal is to prevent this from becoming sustained inflation above its 2% target.
There are still reasons to remain optimistic. 3.75% remains the lowest base-rate since February 2023 and the UKs forecasted growth has been upgraded by the end of 2026.
Following the collapse of the ceasefire agreement in early July, the US-Iran war has seen significant escalation. The two sides have traded multiple missile attacks on key sites, encouraging retaliation from the other.
This has brought key US allies under fire with Bahrain, Kuwait and Jordan targeted. It has also lead to Saudi Arabia participating in strikes against Iran-backed militias in Iraq.
In retaliation, the Houthis in Yemen have blocked a key shipping choke point at the Red Sea, the second important shipping lane to be blocked in the conflict.
In this environment, borrowers are weighing short-term flexibility against long-term certainty. If keeping your monthly payments entirely predictable is your top priority, a 5-year fix offers invaluable protection against global volatility at historically competitive rates.
However, if you have the financial breathing room to handle minor market shifts for the chance of catching lower rates in a year or two, a shorter-term fix is well worth discussing.
We are here to help – please just let us know if you have any questions!
Below we have listed the lowest rates available across a range of LTVs.
Please note these are for illustration purposes only – not all clients may qualify for these. If you need any additional detail, please let us know,
| 95% | 90% | 85% | 80% |
|---|---|---|---|
|
5.41% - Barclays
|
5.09% - Virgin
|
5.03% - Coventry
|
4.99% - Virgin
|
| 75% | 70% | 65% | 60% |
|---|---|---|---|
|
4.93% - Halifax
|
4.93% - Halifax
|
4.87% - Coventry
|
4.79% - Halifax
|
| 95% | 90% | 85% | 80% |
|---|---|---|---|
|
5.29% - West Brom
|
4.99% - Virgin
|
4.94% - Nationwide
|
4.90% - Nationwide
|
| 75% | 70% | 65% | 60% |
|---|---|---|---|
|
4.87% - Nationwide
|
4.87% - Nationwide
|
4.79% - Virgin
|
4.77% - Nationwide
|
Introducing our “Rapid Remortgage”, a bespoke product hosted and facilitated by Vida Home Loans & MAB.
This product costs £585 and has been designed to provide a “Rapid Remo” with the aim of a 10-day turnaround from mortgage offer received to completion. This is subject to client engagement and each party working in tandem.
We know that remortgage timescales are frustrating and unreliable, affecting client choice and leaving product transfer as the only option for certainty.
So we have built a faster remortgage journey, designed to accelerate the end-to-end process from submission to completion, so you can offer your clients a product transfer alternative with confidence.
This product cost is £585 and is available on properties in England/Wales/Scotland on loan amounts of up to £1,000,000. This product is available on freehold, like-for-like remortgages.
What’s included in the £585 total cost?
During uncertain times like these, where a week can have an impact on the rate you secure, a rapid remortgage can offer peace of mind to your clients.
Recent figures from the Bank of England’s money and credit report indicate a significant surge in the housing market, with net mortgage lending climbing to £7.7 billion in June, a steep increase from May’s £3.3 billion.
This latest lending total easily outpaced the £4.9 billion average seen over the preceding six months.
The number of mortgages approved for buying homes also saw an uptick, reaching 58,200 in June compared to 56,600 the month prior.
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July has seen major repricing from lenders as uncertainty returns to the Middle-East.
Borrowers who delay a fixed-rate face risk as rates remain volatile.
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