Mortgage Rate Trends: Navigating the Highs and Lows of Interest Rates

Having been a mortgage adviser for a number of years I’ve seen a few changes in the mortgage market. So, the recent mortgage interest rate rises sadly come as no surprise.

Oh, for the years following the 2008 financial market crash when Bank of England interest rates were crazily low at 0.5% for around 7 or so years and even just following the pandemic at an historic low level of 0.1%. Will we ever see this again? Highly unlikely – though never say never.

Though do we really want a financial crisis to bring mortgage rates down?

So, what about how high interest rates can go? Looking back to November 1979 they were at a whopping 17%. Yes 17%!

Even when I bought my first house in 1989, rates hit 14.88%, thankfully gradually sliding down. Though back then I thought the high rates were quite normal (oh to be young and naïve again).

Since then, changes have occurred in the property market, one being the astronomical increase in property prices which have been counteracted with larger income multiples and flexible criteria by mortgage lenders. And whilst this has happened interest rates have yo-yoed over the years between highs and lows. 

This brings to mind the old adage – `the only thing that is certain is uncertainty’ and this definitely relates to mortgage rates.

And so, in today’s world of mortgage interest rates, it would be fair to say that with the current economic climate in the UK, Trump antics and the impending impact of Middle East events, that perhaps uncertainty has reared its head again. The financial markets are now pointing to a possible four interest rate rises over the remaining year.

So, if you’re looking for a greater understanding of the mortgage market and the mortgage interest rates that are currently available for your remortgage or property purchase then Libby at Holistic Mortgage & Protection is here to answer your questions – 01642 130730.