With energy bills going through the roof and inflation hovering above 10%, the highest in 40 years, we are undoubtably in uncertain times – and many of us are feeling the pinch. But it’s not all doom and gloom!

Fixed mortgage rates fall despite base rate rise:

Despite the Bank of England raising interest rates to 4.25%, Moneyfacts reports that high street lenders have reduced their rates as the BOE suggests inflation may have peaked.

‘Five weeks ago the average five year fixed deal stood at 5.61%, but this has since been reduced to 5.12% today.’ – Published: 09/02/2023

Rachel Springall, finance expert at Moneyfacts said: “Rate competition appears more focused towards five-year fixed deals, and the rate difference between this and the average two-year fixed of 0.24 per cent is the largest margin seen in almost 15 years.

“Borrowers on both ends of these loan-to-value tiers could now find lower rates and more choice and the shelf life of mortgage deals has also stabilised to 28 days compared to 15 days seen a month ago.”

There are more mortgage products available on the market:

Moregood news! According to Moneyfacts, the number of mortgage products on the market has surpassed 4,000 for the first time since August last year.

Moneyfacts reports: ‘A total of 4,341 options for mortgage borrowers, up from 3,643 in January. On a £200,000 mortgage over 25 years, the typical borrower fixing today would now spend £51 a month less on a two-year fix than someone who fixed at the start of January, and £65 less a month on a five-year fix.’

Shared Ownership can be a great way to get on the property ladder when buying a home is out of reach:

If you’re not able to purchase a home on the open market, Shared Ownership offers you the chance to buy a share of your home and pay subsidised rent on the remaining share. The amount you pay for rent and mortgage each month is usually less than buying on the open market.

Deposits are also much lower than buying on the open market, starting as low as 5% depending on the lender you choose. This makes buying a home more accessible, especially for those on a lower income or perhaps buying alone.

To learn more about Shared Ownership, visit our helpful guide page.

If you have any questions about Shared Ownership, visit us on Instagram and reach out! @wearestarthur