The Bank of England has increased the Bank Rate by 0.25 percentage points to 4%. This move, the first since August 2023, is a direct response to inflation, which currently stands at 3.5%. Some lenders had already factored this into their rates before the official announcement, so you might see less dramatic shifts than you’d expect.

Understanding Your Mortgage in a Changing Market

If you have a tracker mortgage, your monthly payments will increase. Similarly, some variable rates will adjust, depending on your specific terms. If you’re on a fixed rate, your current payments remain stable, but the rate you secure when you next remortgage will reflect the new market conditions. Fixed rates are influenced by swap rates, which essentially predict future rate movements, explaining why some deals changed even before the Bank of England’s announcement.

If you’re in the process of buying a property or remortgaging, it’s crucial to compare the total cost, including all fees and monthly repayments, rather than just focusing on the headline interest rate. A trusted mortgage adviser can help you navigate the options available. If you already have a mortgage, check your lender’s terms carefully to understand if and when your payments will change.

Moving Before Christmas: The Reality

With Christmas just weeks away, the timeline for moving becomes tighter. If your sale is already well underway, completing before the holidays is a realistic goal. However, if you’re still searching for a property, arranging a mortgage, or waiting on a chain, the process becomes significantly more challenging. Solicitors, lenders, estate agents, and removal firms all tend to slow down over the festive period. Currently, sales in our area are taking over six months from instruction to completion.

If timing is critical for your move, communicate openly with your estate agent, solicitor, and mortgage adviser from the outset, ensuring everyone is aware of your desired completion date. However, it’s wise not to build your entire plan on everything unfolding perfectly, as delays are common.

For sellers in Sittingbourne, a well-prepared and correctly priced home will still attract serious buyers, even during the winter months. Buyers, focus on whether the monthly cost genuinely fits your budget, rather than fixating solely on hitting a specific moving date.

Planning a Move After Christmas: Don’t Launch on Boxing Day

Property interest typically picks up once Christmas is over, as people use their time at home to consider moving. Many estate agents might suggest launching your property on Boxing Day to capitalise on this. While there are buyers active, to achieve the best possible price, you need more than just one interested party, and most agents are closed on Boxing Day. This often leads to properties being reduced in price later. Launching on the same day as everyone else isn’t a strategic advantage. Last January, we saw a significant number of reductions.

According to TwentyEA, estate agents in our area are currently taking over six months from instruction to completion. Regardless of your launch date, that’s the general timeframe you’re looking at. Getting the price right and ensuring your home is properly prepared will always yield better results than simply picking a headline date.

If you’re thinking of selling in Sittingbourne, Faversham, or Sheppey in the new year, use the weeks leading up to Christmas to get ready. Find out what your home could realistically achieve right now, decide what needs doing around the house, and gather all your necessary paperwork. Buyers, sort out your finances, secure an agreement in principle, and clearly define what you need from a new home.

Outlook for 2027, Landlords and Tenants

Forecasts for 2027 are varied. One recent forecast anticipates a small fall in prices, while a survey of property professionals expects them to remain flat. Both of these were conducted before this latest rate decision and cannot predict what will happen on your specific street. Use these as potential scenarios, not as a reason to rush or to wait.

Landlords with tracker or variable rate mortgages will experience higher payments. If you’re on a fixed rate, you’ll feel the impact when you refinance. It’s important to consider mortgage costs, maintenance, insurance, and rental income together. Higher borrowing costs don’t automatically translate to higher rents, as rents are driven by local supply and demand and what tenants can realistically afford.

If you’re renting, ensure you understand your total monthly cost and the terms of your tenancy agreement. If your rent is changing, review your agreement and seek advice if you have any uncertainties.

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