2022 – what a year and thanks to the Mini Budget we all went on a financial rollercoaster. It’s true that the budget sent everything into turmoil, but specifically the mortgage industry. Rates soared and it’s not surprising that many were afraid to take next steps when it came to buying a new house.
So, what will 2023 bring? Whilst no one can say for certain, the consensus amongst financial advisors and brokers is that hope is on the horizon.
At the end of 2022, mortgage rates were already beginning to settle after the fallout of the Mini Budget. 2 and 5 year fixed-rate mortgages were already going below their 6.5% peak.
Personal Finance Analyst, Alice Holne says that interest levels are expected to peak at a lower level than feared and so mortgage rates in 2023 are not likely to jump significantly.
With the dust beginning to settle, it’s likely that an increase in competition within the mortgage market will lead to an increased range of mortgage options.
Whilst the average standard variable rate is around 6.4%, brokers expect fixed rate mortgages will fall over the next year, hitting around 4% by the end of 2023’s first quarter.
Right now, longer term fixed rate mortgages are cheaper and whilst each individual borrower must consider their unique circumstances, the consensus is that it is still a good time to invest in property.
So if you have a good mortgage offer and deposit, a secure job and have found your dream home – it might just be time to go for it!
For more on mortgage rates, check out this post.
