Your Guide to the Changing Mortgage Market: What You Need to Know

Your Guide to the Changing Mortgage Market: What You Need to Know

Introduction: Your Guide to the Changing Mortgage Market: What You Need to Know

Big changes are happening in the mortgage world, and we’re here to break it down for you. Redrose Estate Agents is diving into the recent shifts, making sure everyone—from first-time buyers to seasoned homeowners—can understand what’s going on.

  1. Nationwide’s Big Move:

This January 2024 Nationwide Building Society, one of the biggest in the UK, made some major changes to its mortgage rates. They dropped them by a lot—up to 0.81 percentage points. Now, their cheapest deal starts at 3.84%, the lowest it’s been in eight months.

  1. Other Lenders Joining In:

Nationwide isn’t alone in this. Other banks like HSBC and NatWest are also lowering their rates. It’s like a domino effect, and some experts think it might turn into a “mortgage price war.”

  1. Not Everyone’s Playing the Same Game:

While some banks are lowering rates, others, like Santander, are doing the opposite. They took away some deals for first-time buyers and raised rates on certain deals in January 2024.

  1. Why Rates Are Changing:

The reason behind these changes has to do with inflation. Things were looking better, but suddenly, inflation went up in December. This could mess with the Bank of England’s plans to lower the base rate, affecting how much it costs banks to lend money for mortgages.

  1. What It Means for You:

Even though rates are dropping, if you’re on a fixed-rate mortgage, you might face challenges when it’s time to renew. Lots of mortgages are ending this year, and homeowners might end up paying about £200 more each month.

  1. Big Banks Making Moves:

Other big banks, like Virgin Money and Barclays, are also changing their rates. Virgin Money made five-year fixed rates lower, and Barclays dropped rates on certain deals.

  1. What’s Next for Mortgage Rates:

While lower rates are good news for some, experts say we might not see super-low rates for a long time. But for those looking to get a mortgage or switch things up, these changes could make a real difference.

You can talk to our independent mortgage advisor

If you’re finding it tough to manage your mortgage payments, we’ve got some positive news for you. About 90% of the major players in the mortgage market, including big banks like Halifax, HSBC, and Santander, as well as building societies like Nationwide, Leeds, and Skipton, have joined the government’s mortgage charter.

  1. What’s the Mortgage Charter?

The mortgage charter is like a helping hand for those facing difficulties. It’s a set of support measures designed to provide relief. If you’re having a hard time, the charter allows you to make temporary changes to your mortgage for six months. This might include switching to interest-only payments or extending your mortgage term to lower your monthly payments. And here’s the good part – you can go back to your original plan within six months by just talking to your lender.

  1. Repossession Delay:

Worried about repossession? Don’t be. Even if you’ve missed payments, there’s a 12-month delay before any repossession proceedings can start. That’s a bit of breathing room to figure things out.

  1. What if Your Lender Didn’t Sign Up?

Even if your lender didn’t sign up for the charter, don’t worry. All lenders have their own measures in place to help customers going through tough times.

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Conclusion: Your Guide to the Changing Mortgage Market: What You Need to Know

In times of financial difficulty, it’s good to know that there’s support available. The mortgage charter and other measures from lenders are there to give you some relief and help you navigate through challenging moments. If you’re facing issues, reach out to your lender and explore the options available to make your mortgage more manageable.

 The mortgage world is going through some shifts, and it’s essential for everyone to stay in the loop. Whether you’re thinking about buying your first home, changing your mortgage, or considering a property investment, understanding these changes will help you make smart decisions in this fast-moving market. Keep an eye out for more updates as things continue to evolve!  You can talk to our independent mortgage advisor

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