The Property NomadsSub 6% Mortgages Again - But They Will NOT Last
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Rob discusses the recent mortgage rate cuts and the potential impact of inflation on the housing market.
While the news of mortgage rates dipping below 6% may seem positive, Rob expresses skepticism due to the possibility of double or triple dip inflation, explaining that the rising costs of fuel and utilities are indicators of potential inflationary pressures...
KEY TAKEAWAYS
- Mortgage rates have recently seen a cut, with the average five-year fixed mortgage rate dipping below 6%.
- Inflation, particularly driven by rising fuel costs, may negate the benefits of the current mortgage rate cuts.
- Rob predicts that mortgage rates may continue to increase in the coming years, even if the Bank of England does not raise the base rate, no doubt due to the greed of banks.
- Halifax is set to launch a five-year fixed rate at 4.93%, which would be the cheapest on the market. However, it is noted that deals at even cheaper rates may be available for those with a deposit of over 40%.
BEST MOMENTS
"Although this is a welcome cut to an extent, what we've discussed on the podcast recently with inflation, either gonna double or triple dip, then this seemingly bit of good news in reality is gonna get washed away with a tide of bad news moving forward."
"I have a feeling that the next few years are going to be quite rocky and that these rates are going to continue to increase moving forward. Even if the Bank of England don't necessarily increase the base rate, I've got a feeling mortgage companies will increase their rates."
"Deals are available at substantially cheaper rates as well possibly, especially for those with more than 40% equity or 40% deposit."
VALUABLE RESOURCES
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ABOUT THE HOST
Rob Smallbone is the author of the Amazon best-seller Buy-To-Let: How To Get Started as well as 101 Top Property Tips and Property FAQ’s.
BOOKS
Property FAQs = https://amzn.to/3MWfcL4
Buy To Let: How To Get Started = https://amzn.to/3genjle
101 Top Property Tips = https://amzn.to/2NxuAQL
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