Are contractor mortgage rate hikes looming?

Are we about to see an end to the era of record-low mortgage rates for contractors?

It would appear to be a likely possibility if today’s market analysts are to be believed.

As the inflation rate in the UK has reached 3%, the MPC increased the Base Rate to stop it from escalating higher. Consequently, many lenders have already taken steps to account for this rise and adjusted their rates.

One strategy was to raise the rates on contractor mortgage products in line with the base rate increase. A number of lenders have already taken this step, including NatWest, who increased their rates across their ranges twice even before the Base Rate announcement was made.

Not all lenders are taking the same approach, though. The bigger names on the high street may all have responded in a similar way; however, other less well-known lenders have done the opposite and kept their rates the same or made reductions.

If you are seeking a contractor mortgage, our advice would be to act as soon as possible and start the process of securing a low-rate deal now while they are still obtainable. Deal Direct’s advisers can expertly guide you through what’s available and help you to source the best possible option for you.     

Procrastinating could mean you lose out and end up paying a higher rate for your mortgage.

Don’t delay and contact us today on 0800 048 8828.