Posted on

Will My Mortgage Rate Drop After Bank of England Announcement?

Last week, the Bank of England cut the base interest rate from 5.25 percent to 5.0 per cent.

As a result of this cut, mortgage lenders quickly sprung into action, reducing some of their rates by a small amount.

This was good news for many home owners but wasn’t exactly the large decrease anyone was hoping for.

But what does it mean for the coming months? Will mortgage rates remain fairly high or will lenders start to drop rates further?

Mortgage rates Autumn 2024

The good news is that today, some lenders have slightly reduced mortgage rates further.

HSBC and Barclays are the latest to cut the interest on their deals. HSBC cut their best deal by 0.19 per cent and Barclays by 0.2 per cent.

The hope is that now more lenders will follow suit and rates should drop further.

Interestingly, the average still stands at around 5.74 per cent for a two year fixed.

With these new rates, someone with a £200,000 mortgage repaying over 25 years could expect to pay £1,050 a month with HSBC and £1,038 with Barclays.

The market average would be around £1,257.

Now let’s focus on Ruddington with a current average house price of £353,157. Those with a 20% deposit would be likely to pay £1,483 per month with the new HSBC rate and £1,466 with Barclays.

Mortgage rates in 2025

Many people are asking Benwell Daykin what this means for mortgage rates in 2025 and beyond.

Whilst we don’t have a crystal ball, we really don’t expect percentage rates to drop to those we have seen for the last few years at around 2 per cent.

Having said this, we would expect a further base rate cut from the Bank of England by the end of this year, if not into early next.

This would mean rates would drop slightly again, but not to the historic lows seen before.

Need mortgage advice?

This information has been gathered from our own research and does not constitute as mortgage advice. Please always speak to a qualified mortgage advisor before making any financial decision relating to your home. You can contact us on 0115 990 2007 to get mortgage advice today.

Are you coming to the end of your fixed term mortgage deal? Now would be the perfect time to see how much money you can save compared to July.

 

Posted on

Will the general election affect house prices?

The general election is here and Thursday will see us all go to the polls to decide on who will be leading the country.

Although housing is not top of everyone’s agenda this time around, it’s still an important subject that many home owners, and soon to be first time buyers, are watching very closely.

But has the general election impacted houses so far and will it cause any significant changes once the election has taken place?

Has the general election affected house prices so far?

Several years ago, house prices were increasing rapidly which was great news for current owners but not so much for those looking to step onto the housing ladder.

In 2023 and 2024, prices have really slowed. Many industry bodies have suggested that prices are still rising but nothing like they have been doing. We reported in June that house prices had risen 0.4 per cent just in time for summer. And in the last 4 weeks, house prices have risen again by 0.1 per cent, exceeding expert predictions.

But is the election the root cause? The team at Benwell Daykin estate agents don’t necessarily think so.

There is talk soon of interest rates lowering and that positive news could be restoring further confidence in the market.

Will the election alter house prices after July 4th?

What about after the election?

If the polls are correct, it looks like we’re soon to have a new government in place and yes, this could put some energy into the market.

Looking at historic data, however, the team at Benwell Daykin aren’t expecting much to change.

Nationwide have too done some research and they have concluded that after the past general elections there hasn’t been any real volatility in the market. Big price movements tend to come with other economic trends.

Nationwide also extended their research to mortgage approvals and again, there was no significant change in the amount of mortgage applications and approvals during and immediately after an election period.

Having said this, other research conducted by Compare my Move did conclude that house prices roses by an average of 4.6 per cent following a general election.

What can we conclude?

By using our knowledge and the above research we conclude that there won’t really be a significant impact on house prices when it comes to the election.

There may be small changes but on the whole, we’re not going to see a huge amount of volatility.

Bigger things to watch out for which may alter house prices significantly would be a change in inflation or a large drop (or increase) in interest rates once again.

What do you think yourself? Let us know your thoughts.

Find out how much your property is worth

If you’re looking for an up to date valuation of your property, contact Benwell Daykin today.

Posted on

Nottingham Property Prices Sumer 2024

UK house prices are growing again throughout the country.

The latest data for May, released at the beginning of June, suggest prices rose 0.4 per cent in the last 4 weeks. This data comes straight from Nationwide.

House prices have remained fairly static throughout Spring 2024, however a small rise in wages and a dip in inflation has meant prices are on an upward trend once more.

The average UK house price now stands at £264,249, compared to £261,962 in April.

Nottingham house prices in Summer 2024

When looking at Nottingham specifically, the average house price is now over £200,000. According to Hometrack, the official figure is £201,200.

This is a 4.9 per cent growth year on year and means that Nottingham house prices have had the biggest gains across the whole country in the 12 months leading to April 2024.

Benwell Daykin expects this rise to continue throughout the summer.

When focusing across Nottinghamshire, to include Ruddington where we are based, the average house price is higher at £238,322 according to Rightmove.

Looking at the data solely for Ruddington, this average price increased further to £333,957.

Mortgage rates for Summer 2024

According to Moneyfacts, the average mortgage rate for a 2 year fixed deal is current 5.29 per cent. This is up slightly on April 2024 which was 5.83 per cent.

The average rate on a 5 year fixed deal is now 5.49 per cent.

This rise is likely due to the Bank of England’s decision to keep the base rate at 5.25 per cent during their last meeting.

The general election and property prices

Many people are asking Benwell Dayking if there will be significant house price movements as a result of the general election.

Data has also been analysed from previous general election periods and it is safe to say that generally house prices are not affected.

How much is your property worth in Summer 2024?

The only way to find out accurately how much your property is worth is by asking an experienced agent, like us, to conduct a valuation.

Our valuations are free of charge with no obligation to use our services.

Simply call Benwell Daykin, estate agents in Nottingham, on 0115 990 2007 or use our house valuation form to get in touch.

 

 

 

Posted on

The surprising property type with rapid house price growth

It’s likely you will have heard reports that house prices have dropped over the last few months.

Although this is true in some areas, prices are beginning to rise once more according to Halifax. This is of course good news for home owners looking to sell or those looking to release some equity.

But there’s one particular property type with prices rising faster than anything else – flats.

With borrowing costs higher than they have been for a number of years, buyers are struggling to find affordable properties. This means they are now turning to smaller properties in an attempt to keep their monthly repayments down.

First time buyers in particular are looking for more affordable options and so they are turning to flats to purchase for their first home. The increase in demand is now driving prices upwards faster than most other property types.

Property prices will continue to rise throughout 2024

Benwell Daykin predicts that prices of other property types will soon rise as quickly.

There is now much higher confidence in the market with the highest number of mortgage approvals than any time in the last 18 months. Affordability, however, is still very much a problem for some and this could last for a while longer. It is expected that the Bank of England will keep interest rates at 5.25 per cent when they next meet on Thursday 9th May.

Benwell Daykin expects this to begin to drop by the end of the year, if not sooner.

So, there may still be some challenges in the market. However, if you’ve been putting off placing your home on the market, it now looks like activity is beginning to bubble once more.

Is it time you found out how much your house is worth in the current climate? The average Ruddington property price is now well over £300,000.

Talk to Benwell Daykin today on 0115 990 2007 to receive personalised property advice.

 

 

Posted on

Easter Colouring Competition 2024

Click here for the 2025 Easter Colouring Competition.

Benwell Daykin’s annual colouring competition is back!

Every year, Benwell Daykin Estate Agents runs a competition in line with Easter.

The competition has several different age categories, with a simple Easter design for children and a more complex design for adults.

Whether you have children who would like to take part, or if you simply want to put your adult colouring skills to the test, download our 2024 Easter designs here.

Please return entries to the office on High Street in Ruddington by 29th March 2024.

And if you’d like to find out how much your property is worth with a free valuation, we can speak to you about this at the same time!

Good luck to everyone taking part and Happy Easter!

Children’s Competition Download

Adult Competition Download

 

Posted on

When Will Mortgage Rates Drop?

Many people across the UK are asking when will mortgage rates will drop?

For those who already own a property, the prospect of remortgaging may seem daunting since rates increased in 2023.

Those looking to move to a new property may also be waiting for mortgage rates to drop to make their next purchase just that bit more affordable.

When will mortgage rates drop?

The good news is that they are starting to drop already.

It was reported this week that rates dropped below 4% at Nationwide, the UK’s largest building society. The rate is 3.84% at the time of writing.

This is the cheapest deal provided by the company for 8 months and is also significantly under the Bank of England’s base interest rate.

This is only available currently to those who are remortgaging although it’s still not bad news for first time buyers; the rate offered to those looking to take a first step onto the property ladder is only 0.01% higher at 3.85%.

Both these products are 5 year fixed rate deals and are significantly lower than the average offered by other lenders which stood at 5.2% this week.

Will other mortgage lenders follow suit?

Although some lenders are following the trend of sub 4% products, some are actually increasing.

Santander recently increased their rates on some mortgage products by 0.2% for remortgages.

This though is still well below the average last summer when rates stood at around 6%.

Should you wait for rates to drop further?

Unfortunately, we don’t have a crystal ball which will tell us the future relating to mortgage rates.

As we’ve seen this week, rates can go up and down and fluctuate daily.

For now, we feel that rates are likely to stick at around this mark for the next few months.

The best advice we can give at Benwell Daykin is always talk to our qualified mortgage broker who will be able to advise you in more detail.

Products can vary depending on your own circumstances too, so it’s always a good idea to compare the whole of the market with a broker and find out which products match your criteria.

For some, this will now be the best time to buy a new property as rates are now becoming more affordable.

 

Posted on

Will Mortgage Rates Come Down in 2024?

2023 saw a huge hike in mortgage rates, largely due to the Bank of England increasing the base interest rate to 5.25%.

According to Zoopla, fixed mortgage rates peaked at 6.44% which was a stark contrast to the historic lows.

But will mortgage rates continue to rise in 2024 or will they begin to drop?

The good news is that mortgage rates are already starting to come down. News reports in early January 2024 suggest that mortgage lenders are already cutting rates.

One of the biggest UK lenders, Halifax, has cut their mortgage interest rates by close to one percentage point and mortgage brokers are expecting other lenders to now follow suit.

It is important to note however that not all mortgage products will be reduced, so it’s wise to speak to a mortgage broker to understand which ones have now become more affordable for you.

How mortgage rates are dropping at the start of 2024

Towards the end of 2023, you’d be lucky to get a mortgage rate below 5%. Since January 2024, 5 year fixed rate deals are now being offered at below 4%. However, this rate is only available currently for a remortgage with a 60% loan-to-value.

Media outlets are reporting that a 2 year fixed deal should soon fall below 4.5%.

As we continue to move through the year, Benwell Daykin expect these below 5% rates will move to other mortgage products too, as well as other lenders.

What does this mean for the housing market?

When rates decrease, buyers tend to have better affordability. This means they can look to make offers on properties which they previously may not have been able to afford.

As such, we expect house prices to remain at their current levels, if not increase slightly.

Houses should begin to sell faster too, as increased affordability means more people will be looking to purchase property.

Key things to remember as mortgage rates drop

Remember to always speak to a mortgage broker before making a decision on which mortgage product to go for. Benwell Daykin offers free initial mortgage advice which can help you to decide which product is best for you based on your own circumstances.

Fixed rates are a great way to lock in lower interest rates but be aware these rates could go down further. If you lock in for a long period of time then you will be missing out on these further drops. Of course, rates could rise too which would obviously act in your favour!

Remember also to look out for fees. Some lenders offer lower rates but include a fee when signing up for the mortgage.

Posted on

Why Hasn’t The UK Housing Market Crashed?

After COVID-19 and following the sharp inflation rate rise, many were expecting house prices to crash.

The reality is that house prices did indeed dip, but not by a huge amount.  According to Nationwide, prices have dropped just 2% in 2023.

What’s more, other reports have suggested that although there is an overall drop for the year, prices are actually on the up since the Autumn.

So why haven’t prices dropped significantly? The team at Benwell Daykin list some of their thoughts.

Interest rates have remained stable

When the Bank of England began to raise interest rates, many took a step back from looking to move due to affordability. If interest rates rise then mortgage costs do too. This meant that many home owners had to reduce their prices to continue to entice buyers.

Now however, interest rates have remained at a steady 5.25 per cent since August 2023.

House prices have already dipped to reflect this change and have remained stable along with the rate of interest.

Unemployment remains steady

When the population struggles to find work then this, of course, has a knock on effect on the economy.

Unemployment has risen in 2023, however it is much lower than both 2014 and 2021 according to Trading Economics.

unemployment uk economy figures

Mortgage rates are coming down

When interest rates began to rise, so did mortgage rates. Some home owner’s monthly payments began to triple.

Some others had made offers on higher priced houses but suddenly couldn’t afford them when rates went up.

As such, home owners again lowered prices to combat this.

Now mortgage rates are dropping once again. Although they are certainly nowhere near where they were a couple of years ago, some lenders now have products at below 5 per cent.

If rates fall further, this could actually boost house prices.

This puts confidence back in the property market and heightens affordability once again.

Inflation has slowed

Inflation cooled more than expected in October 2023, from 6.7 per cent to 4.6 per cent.

It has now more than halved from its peak of 11.1 per cent in October 2022. This has been a relief for many who are struggling with the cost of living.

Inflation slowing is another confidence boost to the property market.

So will we see a market crash?

Unfortunately, we don’t have a crystal ball here at Benwell Daykin.

All the above seems very positive and if things continue as they have been doing, we would expect to see house prices increase rather than decrease.

However, the world and the economy is ever changing and we just don’t know what tomorrow might bring.

How much is your house worth right now? Where ever you are in Nottinghamshire, contact our friendly team to find out today.

 

 

 

 

 

Posted on

Nottingham Property Prices Winter 2023

A property price increase

Today Nationwide have stated that property prices are on the rise once again.

Prices had dipped marginally in most areas of the country and many experts predicted there would be a further decline throughout the remainder of the year. Thankfully, this now appears not to be the case.

What about Nottingham property?

Nottingham has always remained one of the strongest area for housing price growth across the country. This year is no exception.

Despite decreases in almost every area of the UK, Nottingham hasn’t really been hit. Prices remain strong and growth has actually continued!

If we look at Hometrack’s data, Nottingham sits top of every major UK city for growth in the last 12 months. This stands currently at +2.9%. Sitting at second place is Birmingham at +2.7% and Sheffield with +2.3%. If we compare this to London, they saw a decline in the last year with -0.5%.

Looking short term, Nottingham prices increase in the last 3 months by 0.3%.

Why did property prices decrease in other areas?

Property prices have decreased slightly in 2023 mainly due to the rise in interest rates. This meant that more people were cautious when it came to applying for mortgages. As a result, less people were then looking for houses which brought prices down.

It is important to note however that it is only a small decline. Prices dropped across the board by just -1.1% in 2023. (Hometrack)

What is the average property price now?

The average home increased in price from £257,808 in September to £259,423 in October, according to Nationwide‘s latest house price index. This index is based on their own mortgage data but is very accurate as they are one of the largest UK lenders.

In Nottingham, the average property price is now £202,400. According to our trusted Nottingham mortgage broker, the average mortgage rate is now also just over 5 per cent.

Why have house prices generally increased?

Data suggests that many buyers have been holding off buying due to the rise in mortgage interest rates. Now it appears that they cannot wait any longer and have decided to purchase, regardless.

Other contributing factors include strong employment and a short supply of available properties.

What does this mean for home owners?

For those waiting to sell, you’d be forgiven if you were putting this off after listening to the national news.

Whilst we would advise anyone to remain cautious with the constant changing interest rates, now is definitely not a bad time to place your property on the market.

With the increase in buyer confidence now across the board we should see more people looking at every property and battling to make the highest offer.

How much is my property worth?

We can offer you a free, no obligation property valuation. Simply call us on 0115 990 2007 or use the form below.

    I agree to being contacted by
    EmailPhone

     

     

    Posted on

    Nottingham Lettings Update

    October 2023 and the Nottingham lettings market is booming.

    According to the BBC, landlords are now seeing at least 25 interested parties looking at every individual property.

    Looking back at the rental market in 2019, this was down to an average of just 6 parties looking at the same house or flat.

    Rental price rises

    This news now comes at the time when the average rental price outside of London has hit £1,278 – a new record. This alone is a 10 per cent increase since July.

    Looking specifically at Nottingham, the average rental price for those letting their property is £1502 pcm (Homes.co.uk)

    Why are rents rising in Nottingham?

    Rents are rising in Nottingham for a number of reasons. The city has an extremely large student population and many students are now returning after COVID.

    Many individuals, couples and families are also now turning to the rental market since high mortgage rates have made home ownership a distant prospect.

    Earlier this year, Benwell Daykin also reported that renting could soon be cheaper than buying in the Nottingham area.

    Housing demand outstripping supply

    Another reason for such a large amount of applications for each property is that supply is fairly low.

    Many landlords are looking to sell due to mortgage rates, tax changes, EPC changes and more. This means that there is a much smaller range of properties for prospective tenants to choose from.

    What does this mean for landlords?

    If you’re looking at letting a property to tenants then your void periods are likely to be minimal. This should obviously save you some money, especially for those who still have a buy to let mortgage.

    If you were considering selling your property then it may be an idea to wait and let it out instead.

    How can tenants successfully rent their dream property?

    With demand so high, letting agent Benwell Daykin can offer a few tips on how to successfully rent a property.

    • Start looking early to ensure you aren’t left without a home. With 25 parties looking at each rental property, the chances of getting rejected are unfortunately high
    • Ensure you have all your paperwork in place, including ID, payslips and references
    • Calculate your finances and make sure you aren’t out pricing yourself. Remember to include funds for your deposit, bills, furniture and more
    • Set up alerts on Rightmove or Zoopla. This means you will get an email as soon as new lettings properties are listed

    Want more lettings information?

    Talk to Benwell Daykin who can help both landlords and tenants. Call 0115 990 2007 today. We can even provide free valuations.

    We have been successfully matching tenants to rental properties for years and offer free advice over the phone.