UK Mortgage Rates: What You Need to Know

Though your mortgage interest rate will vary depending on the mortgage provider and product you choose, but one important factor that can determine mortgage interest rates is the Bank of England base rate. This is a key benchmark that influences borrowing costs across the UK.

The base rate effects a range of financial products, from mortgages to savings accounts and pensions, and even affects the value of the pound. Set on the first Thursday of every month, the base rate is determined by looking at UK spending and how it is affecting inflation. In short, if spending is too high, the rate will be increased to ease inflation. On the other hand, to boost spending and economic activity, the rate is lowered.

The current Bank of England base rate is currently at 4.5%, the lowest it has been since June 2023.

Source: Bank of England

Why Expert Advice Matters in the Current Mortgage Market

After the uncertainty that followed the mini-budget of late 2022, where interest rates rose very quickly, the market has stabilised slightly. However, there is still a long way to go before we see anything resembling stability in the UK mortgage market.

There are estimated to be over 4,000 different mortgage products currently available in the market that cater for all kinds of people with individual circumstances, this is why it is more important than ever to seek help from a financial expert when it comes to a mortgage.

Using an experienced property finance broker with knowledge of the market and up-to-date data on the latest products and fluctuations will help ensure you get a competitive mortgage offer that suits your specific lending requirements.

Whether you are looking to purchase a property, remortgage from another lender, or lend money for another purpose please get in touch with one of our experts to discuss this further. Our team is here to guide you every step of the way.