Mortgage
What is the current update on mortgage rates in the UK?
– Bank of England held Bank Rate at 5.25% on March 21, fifth consecutive freeze since August last year
– Inflation fell from 4% in January to 3.4% in February, leading to plateau in interest rates
– Experts predict Bank of England may not cut Bank Rate until summer despite inflation decrease
– Average cost of two-year fixed rate mortgage is 4.98%, three-year fixed rate is 4.78%, and five-year fixed rate is 4.77%
– Standard variable rate is 7.84% compared to 4.75% in July 2022
– Bank Rate affects variable rate deals immediately while fixed-rate deals are shielded until expiration
– House prices have been increasing, with average home cost at £261,142 according to Nationwide
– Interest rates rose previously due to inflation caused by energy bill costs, but have been decreasing
– Mortgage deals vary based on lenders, deposit size, and type of mortgage
– Mortgage offers are usually valid for six months, allowing homeowners to lock in rates for remortgaging
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