Censeo Financial: Why do mortgage rates change so often?

Specialist brokers discuss the various factors behind mortgage rate fluctuations

Introducing Censeo Financial

Censeo Financial are an award-winning mortgage broker specialising in Shared Ownership and affordable homeownership. Having been trading for over 16 years, we work with many housing associations, councils and developers and have helped thousands of first time buyers get onto the property ladder. We have access to all lenders who offer Shared Ownership mortgages and often get exclusive deals that you wouldn’t get from going to a lender direct.

We understand the importance of providing a friendly and helpful service and have achieved 98% five star Google reviews in the last 12 months – we strive to offer the best service possible and to find our customers the best mortgage for their personal needs saving time and money.

Mortgage rates

Mortgage rates in the UK do change frequently, due to a variety of factors such as changes in the Bank of England’s base rate, inflation, economic growth, global events, political instability, and market competition among lenders.

The Bank of England’s Monetary Policy Committee (MPC) is responsible for setting the base interest rate, which can have a significant impact on mortgage rates. If the MPC decides to lower the base rate, it could lead to lower mortgage rates. The Bank of England’s base rate is the interest rate that determines the cost of borrowing money for financial institutions, and when this rate changes, it can directly affect mortgage rates. If the bank increases interest rates, mortgage rates may rise as well.

Inflation and economic growth also have an impact on mortgage rates as they affect the demand for borrowing and the supply of money available for lending. If the economy is growing, and the demand for credit increases, mortgage rates may rise. If there is an increase in inflation, the Bank of England may raise interest rates to keep inflation under control, and this can lead to higher mortgage rates which is what we are seeing at present.

Political instability and global events can also cause lenders to review and adjust their rates to remain competitive or respond to economic uncertainty. Additionally, market competition and lender policies can also affect mortgage rates. Lenders may adjust their rates based on market demand, competition, and funding costs.

Interest rates can rise or fall, currently we are seeing mortgage rates increasing, often with lenders giving less than 24 hours notice. It’s therefore vitally important that you have all your documents available for your mortgage appointment if you are considering a mortgage product to prevent disappointment. Any delay can see your monthly mortgage payments increase and, in some cases, make affordability an issue.

It’s essential to note that mortgage rates can fluctuate due to various factors described, and therefore it is essential to keep track of the mortgage market and seek professional advice from a mortgage broker like Censeo when making mortgage-related decisions.

Share to Buy is a one stop shop for affordable homes. On our website, you can search for properties, compare mortgages and find out all you need to know about alternative home-buying schemes such as Shared Ownership via our article index.