Mortgages

Homebuyers with small deposits will continue to have access to Government-backed support after its 'mortgage guarantee scheme' was extended this week for another year. But even with the difference in cost between mortgages for those with a 5% deposit and those with a 40% deposit at its narrowest in over 10 years, is it wise to take out a 95% deal? We explain your options below. 

The Bank of England has increased the base rate from 3% to 3.5%. This rate is used by the central bank to charge other banks and lenders when they borrow money – and so it influences what borrowers pay and what savers earn.

Rising rates have dominated mortgage headlines this year, with both fixed rate and variable deals becoming more expensive. To try to provide clarity on what you can expect, we have spoken to mortgage experts and financial market analysts to see what they think is in store for 2023.

Mortgage lenders have been pushed to offer more support for struggling homeowners following a meeting with MoneySavingExpert.com founder Martin Lewis, the Chancellor Jeremy Hunt, and the financial regulator. The move comes as homeowners continue to face higher and significantly more expensive interest rates amid the cost-of-living crisis.

If you've secured a mortgage rate, but that deal hasn't yet started, it's worth checking now if you can get a cheaper rate, as many offered on new mortgages are now lower than they have been in the last few weeks. Most lenders won't charge you a fee to cancel, and a cheaper deal could save you £100s. 

If you need a new mortgage you might now be much better off sticking with your existing lender than switching to a new one. We look at the difference between 'sticking or twisting', and why the balance between the two has shifted.

Homebuyers and those looking to remortgage can now take out a five-year fixed deal that charges less than 5% interest. It's the lowest shorter-term fixed rate for new customers we've seen in a month and suggests rates have peaked following recent turbulence. Below we explain how the new deal works and how it compares. 

The cost of fixed-rate mortgage deals has started to fall, despite the Bank of England's base rate rise last week, as the volatility caused by the Government's mini-budget in September looks to have eased. Variable-rate mortgages are rising, though – here's what you need to know if you're looking to get a new deal.

The Bank of England has increased the base rate from 2.25% to 3% – the largest single rise since 1989. This rate is used by the central bank to charge other banks and lenders when they borrow money – and so it influences what borrowers pay and what savers earn.

First-time buyers planning to use a Help to Buy equity loan to fund a new-build property purchase have until Monday (31 October) to submit their application. Almost 10 years since its original launch, the Government's equity loan scheme will close for good in March 2023, but anyone who wants to take part must apply by the beginning of next week.