An estate agent has assured homeowners in Bolton that those on “fixed” mortgage contracts will not be affected by repayment rates increasing.
New data shows that the costs of a repayment mortgage based using the quoted five term has increased by 53 percent since 2017.
Typical payments on a five-year fixed mortgage for an average detached property in Bolton is £2,046 with a deposit of £30,000 and a 25-year mortgage.
The average price for a detached property in Bolton was £352,000 in December last year.
Estate Agent Andrew Cardwell said: “A significant portion of the homeowners in Bolton will not be affected by these fluctuations as they are within a ‘fixed term’ of their mortgage agreement and this protects them from these market fluctuations.
“Hopefully as the year progresses the costs associated with a new mortgage will fall.”
Using the Property Data resource, the average price of a property in North West England in February 2017 was £150,960 and in December 2022 – the latest month for the publication of sold prices – it was £221,101, though a detached property is higher.
Andrew said: “This shows an increase in prices of just over 46 percent in a slightly shorter period.
“We also need to bear in mind that in autumn 2022 there were financial difficulties that the mortgage markets faced, as we moved our way through three Prime Ministers and the economic consequences of what is referred to “Trussonomics”.
“There were notable increases in the interest rates, and there are market pressures related to the current high inflation rates and the cost of living crises that we are moving through.”
Andrew predicts the cost of borrowing to reduce this year.
He said: “In fact over the last couple of months, despite the base interest rate increasing, some of the major lenders have actually reduced their lending rates over the last few weeks, so the rates available are more competitive than only a few months ago.
“If you are thinking of purchasing a property, or re-mortgaging, it is sensible to speak with an independent financial advisor as they often have access to the whole of the mortgage market and may be able to source an even more competitive borrowing rate than we as individuals are able to.”
