Impact of Interest Rate Hikes on Thanet Property Market

The reason behind these rate hikes is to combat high levels of inflation. The government has set a target of 2% inflation, and the recent inflation rate drop to 7.9% in June has been better than predicted by the markets.

Influence on Mortgage Rates

As a result of these inflation figures, mortgage rates have slightly decreased recently. Experts anticipate that mortgage rates will continue to fall gradually in the coming weeks. The positive inflation numbers have given the market confidence that inflation will continue to decrease, leading to a more optimistic outlook and potential further rate reductions.

Impact on Thanet Homeowners

If you a Thanet homeowner or landlord and have a fixed-rate mortgage, your monthly payments will remain unchanged until the end of your deal. However, if you're on a variable or tracker mortgage, your payments are likely to increase.

The Mortgage Lenders Charter

The Mortgage Lenders Charter, launched in July, aims to assist those struggling with monthly payments and those nearing the end of their fixed-rate mortgages by allowing borrowers to secure a new deal up to six months before their current deal ends.

Forecasted Changes in Interest Rates

The Bank of England's Monetary Policy Committee meets regularly to determine whether interest rates should rise, fall, or remain stable. It is expected that the Base Rate may peak at around 5.75% in early 2024 and then start to decrease in the latter half of the year. The next decision on interest rates will be announced on 21 September 2023.

Potential Implications for the Thanet Property Market

For Thanet homeowners, this uptick in interest rates to 5.25% might raise questions about its impact on the Thanet property market.

However, it's important to note that the Thanet property market has demonstrated its resilience and adaptability time and again. The gradual nature of these interest rate increases means that they have already been taken into account and priced into existing mortgage rates.

This factor could act as a stabilising force, offering homeowners a sense of reassurance.

The current environment might present opportunities for those considering property-related decisions, and the Thanet property market, known for its consistent growth, should continue to hold promise.

Contact Us

If you are a homeowner, or landlord in Thanet, and would like to pick our brains, do not hesitate to give us a call on 01843 231833.

About Cooke & Co

The are a renowned estate agency trading since 1992, is conveniently situated in the picturesque seaside district of Thanet. We proudly operate from our local offices in the region's primary towns, namely Margate, Broadstairs, and Ramsgate. Additionally, our extensive reach encompasses the charming areas of Westbrook, Westgate, Birchington, Monkton, Manston, and Minster. Our presence in these diverse locales enables us to offer an enriched understanding and comprehensive service to the property market in these prime coastal towns and villages. Offices in MArgate 01843 231833. Ramsgate 01843 851322 and Broadstairs 01843 600911