Last year brought significant changes to the mortgage market, with interest rate rises and the end of the stamp duty holiday. As we look ahead to 2023, it's important to understand what may happen next. At Mortgage321, we want to assure our clients that we're here to help navigate these market predictions.
Interest rates started the year at 3.5%, the highest in nine years, and then we saw further increases. However, recent indications suggest that the peak may be below the previously anticipated 6%. While mortgage rates are likely to rise, they may not reach the levels initially projected.
This means that mortgage rates will be higher than they were a year ago. We may need to adjust to this "new normal" of slightly higher rates. However, lenders are pricing their fixed-term mortgages lower as a response to the changing market conditions.
If you need to remortgage in 2023, it's crucial to take proactive action rather than falling onto your lender's standard variable rate. By exploring fixed-term deals, you can benefit from the certainty of knowing your monthly payments. Tracker mortgages, with their fluctuating rates, are also gaining popularity due to their currently lower rates.
The decision between fixed and tracker mortgages ultimately depends on your risk appetite and financial circumstances. Our experienced mortgage advisers can help you review your situation and determine the most suitable option for you.
If you have any questions or would like to discuss your mortgage options, please reach out to us. We're here to provide guidance and support, with no obligation. Whether you're based in Colchester or anywhere else in the UK, Mortgage321 is ready to assist you.