Home Property Finance & InvestmentMortgages July inflation decreases from 7.9% to 6.8%, but what does this mean for homeowners and mortgage rates?

July inflation decreases from 7.9% to 6.8%, but what does this mean for homeowners and mortgage rates?

by LLP Finance Reporter
16th Aug 23 2:47 pm

Leading homeownership site Better.co.uk  is advising people who need to renew their mortgage to take advantage of a decrease in inflation.

July saw UK inflation fall from 7.9% to 6.8%, which experts are seeing as a positive sign for both aspiring and existing homeowners, as reflected by key high-street lenders decreasing mortgage rates during August.

However, indicators suggest a small rise in inflation could be likely when August’s figures are published in September – largely thanks to increased wage growth.

With increased pressure on the Bank of England to increase the base rate further as a response to wage growth, and with current two and five-year Gilt and SWAP rates (funding strategies lenders use to help price their mortgage products to consumers) all rising slightly since August 14th, mortgage lenders may slightly increase their fixed rates in the near future.

Better.co.uk’s Head of Mortgage Operations, Amanda Aumonier said, “Key lenders have reduced fixed rates in the last two weeks. If the Bank of England increases the base rate in September, variable rates will increase and fixed rates may also rise.

“If you need to remortgage in the next six months, it’s worth speaking to a mortgage broker now. If you’re in the process of buying a home, you should also consider speaking to a mortgage broker now.”

Founded in 2016, Better.co.uk has facilitated $30.9 billion in home loans, delivered over $7 billion in cumulative coverage through its insurance services and has successfully raised over $400 million in equity capital.

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