As interest rates experience another rise, it is natural for homeowners to be concerned about their financial stability. However, it’s important to remember that fluctuations in interest rates are a normal part of the economic cycle.

Asked for his opinion by the local media, our own Pierre Blampied had predicted the latest rise saying; “This year was always going to be a tougher year but looking ahead to 2024 I expect inflation to come under control as we approach a General Election in the fourth quarter. I would expect base rate to be between 4% and 4.5% in December 2024.”

While a rate increase may impact borrowers coming off their fixed-rate period, reputable lenders should be looking to assist their customers during this transition. The industry does understand the challenges faced by homeowners adjusting to higher rates and are proactive in providing support and guidance, it is important to them to maintain long-term relationships and the financial well-being of their customers. They key advice is to talk to a reputable broker in the first instance but also to remember that you have the option to shop around. The mortgage market is a competitive one and there are a lot of products out there. One thing to remember is that you may be in a different place now to when you were when you fixed so other products could be a better match for your circumstances. The same applies to first time buyers, seek expert advice and explore all available solutions.

In recent weeks we have seen an increased amount of re-mortgage activity with Lloyds being the major beneficiary. However, Lloyds have this week increased rates prior to todays announcement. We continue to prefer tracker/discount rates based on the anticipated interest rate reductions in 2024. Interestingly Marsden Building Society currently offer a discount rate priced at 4.99%.