HomeOwners Alliance's reaction to today's interest rate rise

But when it comes to what’s going to happen next for mortgages? It’s a case of watch this space. Lenders are eyeballing each other to see who will act first in offering the best new deal. As they test the waters, we’ve seen new cheap rates on offer only to have them quickly pulled again by the lenders, so homeowners on the lookout for the best deal need to act fast.

Here’s our advice:

• Mortgage rates may be more expensive than we’ve been used to in recent years but they are significantly lower than the sky high rates we saw following the Autumn 2022 mini-budget. So take stock and see if you can save.

• Move fast: we’re continuing to see the best rates pulled from the market so move fast to avoid the risk of missing out. 

• If you’ve applied, been given a decision in principle or a mortgage offer from a major UK bank or building society in recent months, it’s worth checking to see if you can find a better rate today.

• If you’re holding off because you want to fix your mortgage but want to wait and see what happens to rates first, you may consider taking out a penalty-free tracker as a holding position.

• If you’re on your lender’s standard variable rate, check your deal now to see if you can save by remortgaging as SVR rates have soared