Time To Act: Some Mortgage Rates Fall as Base Rate Rises


It comes as no shock that the Bank of England has once again increased the bank base rate. However, amidst this rise, some mortgage rates have actually fallen, making it an opportune time for potential investors, especially in the thriving Manchester property market. In this article, we’ll explore the current mortgage landscape and why you should act fast if you’re planning to invest in Manchester’s booming property scene.

A Surprising Turn: Lower Mortgage Rates Amidst Rising Base Rates

As the Bank of England confirmed its 11th consecutive base rate rise from 4% to 4.25%, many expected mortgage rates to follow suit. However, the latest data from Moneyfacts paints a more positive picture. Fixed-rate mortgage products have actually decreased since the end of 2022, despite the Bank Of England Base Rateincrease. Many experts believe this is because the market had already “priced in” such a move; so confirmation of such rates simply gives affirmation to analysts accuracy of future rates.
For those looking to purchase property or remortgage soon, industry experts are advising fast action, especially for those currently on their lender’s standard variable rate, which has continued to climb.

The Manchester Property Market: A Golden Opportunity for Investors

Manchester’s property market is experiencing unprecedented growth, with rental prices surging ahead of other UK regions. Apartment rental prices in the city centre recorded an annual growth rate of 22% in the second half of 2022. This growth outpaces other cities outside London and can be attributed to factors like the end of the Help to Buy program, rising mortgage rates, and an increased focus on energy efficiency. With JLL (a property services firm) predicting that Manchester city centre home sale prices will increase by 19.3% and rents by 21.6% over the next five years, now is the time to invest in this booming market.
At Philip James, Direct Mortgages can monitor mortgage rates on a continual basis, to always ensure you will get the best rate for the property you are considering buying.

The Impact of Falling Fixed-Rate Mortgages on Manchester Investors

The decrease in fixed-rate mortgages is excellent news for investors looking to lock in long-term stability amidst Manchester’s skyrocketing property market. On average, fixed-term mortgage rates are now at a six-month low, despite the Bank of England base rate going up. This development presents an opportunity for property investors to secure lower mortgage rates and capitalise on Manchester’s thriving rental market.

Why Manchester?

Manchester’s rental market boom is driven by several factors, including a high graduate retention rate and rapid population growth. With an expected population rise to 635,000 by 2025, demand for rental properties will continue to soar. Additionally, house-building trends are falling short of meeting the increasing demand, even with large regeneration projects like Spitalfields or Victoria North. This supply and demand imbalance further drives rental prices, making Manchester an attractive location for property investors.

Key Takeaways: Act Fast and Optimise on Lower Mortgage Rates

If you’re considering investing in Manchester’s property market or looking to remortgage, now is the time to lock in lower fixed-rate mortgages. The incentive to fix is clear from the continued rise in the average Standard Variable Rate (SVR), which has reached levels not seen since 2008.
With Manchester’s property market outpacing other regions, now is the time to seize the opportunity and invest in the city’s booming rental market. By acting fast and securing lower fixed-rate mortgages, you can navigate the rising base rates and make a smart investment in this thriving property scene.
However, it’s crucial to keep a close eye on the mortgage market, housing supply, and house prices in Manchester, particularly for new buyers who are a critical part of keeping the market moving. Affordability remains a challenge for many borrowers, so don’t hesitate to speak with an expert, such as our resident mortgage expert here at Phillip James to make sure you are ready to enter this lucrative marketplace.
Remember, understanding the market dynamics and seeking professional advice is key to making the right decisions for your unique circumstances. So, keep a close eye on the ever-changing mortgage landscape and make the most of the opportunities available in Manchester’s thriving property market.

Contact Our Senior Mortgage Advisor For More Information

Share on social media: