Mortgage holders in the UK have been given a major boost as rent and mortgage costs have stabilised in June, with energy bills set to continue falling. According to Barclays Property Insights, consumer spending on utilities fell 15.6 per cent in June, with further declines predicted following the energy price cap decrease on 1 July.
The latest mortgage deals
Mark Arnold, Head of Savings and Mortgages at Barclays, said: “Our latest spending figures paint an encouraging picture for UK consumers – rent and mortgage payments are stabilising, energy bills are coming down, and confidence is on the up.”
This is welcome news for homeowners and renters alike, who have been facing increasing costs in recent months. However, the news is not all good, as lenders are expecting a further rise in mortgage default rates in the coming months, according to a Bank of England survey.
Mortgage default rates set to rise
Mortgage default rates rose in the second quarter of 2024, and banks and building societies are bracing for the largest jump in defaults in a year over the next three months, the Bank’s latest credit conditions survey showed.
The Bank’s survey also found that mortgage availability is expected to increase slightly over the third quarter, with lenders noting increased demand for home loans over the last few months even as mortgage rates remained elevated.
Mortgage availability set to increase
In other news, Tesco has announced that it will close its Express stores early on Sunday to allow staff to watch the Euro 2024 final. The supermarket chain said the decision had been taken to allow its staff to get home or to the pub in time for kick-off at 8pm.
England reaches Euro 2024 final
The pound has also reached a four-month high versus the dollar at $1.28, following remarks by Bank of England rate-setter Huw Pill that the timing of the UK’s first rate cut was an “open question”.
Pound reaches four-month high
We’ll be keeping a close eye on these developments and how they affect the UK mortgage market. In the meantime, you can read more about the latest mortgage deals and how to secure the best rate for your home.
Getting the Best Mortgage Deal
With mortgage rates on the rise, it’s more important than ever to secure the best deal for your home. Here are some tips on how to get the best mortgage rate:
- Shop around: Compare mortgage rates from different lenders to find the best deal for your circumstances.
- Improve your credit score: A good credit score can help you qualify for better mortgage rates.
- Consider a fixed-rate mortgage: Fixed-rate mortgages can provide stability and protection against rising interest rates.
By following these tips, you can secure the best mortgage deal for your home and avoid falling victim to rising mortgage default rates.
