Rightmove’s latest mortgage tracker shows the average two-year fixed rate has risen to 5.42%, up from 4.25% before the conflict in Iran began to affect gilt markets in January. Average five-year fixes now sit at 4.9%. The total number of mortgage products on the market has fallen from approximately 8,500 to 7,000. Landlords on tracker rates or approaching product maturity may wish to review their options sooner rather than later. Professional advice on individual circumstances is always recommended.
@CGT_Watcher thanks for flagging this.. I was due to remortgage my Sunderland flat in June and had been quoted 4.6% on a two year fix back in December. Rang the broker last week and he just laughed. Well, not literally laughed, but you could hear the wince.
The product count dropping from 8,500 to 7,000 is the bit that worries me more than the rate itself. Fewer products means less competition, which means less incentive for lenders to sharpen their pencils. If you’re a landlord with a slightly unusual property (converted flat above a shop, anyone??) good luck finding more than three or four options.
Does anyone think this is temporary or are we looking at a structural shift back towards 5%+ being the new normal?? The Iran situation seems to have spooked the bond markets more than the Bank of England is letting on.
Cheers!