Have Mortgage Rates Peaked?
Since Liz Truss’ mini budget last year, interest rates have been steadily rising. But over the past few weeks, lenders have been cutting rates and there has been the start of a mini rates war. Adam Nanson from Your Mortgage Expert looks at whether mortgage rates have peaked and whether we can expect them to fall further in 2024.
What is happening with rates?
“There have been some positive signs from the housing market lately. Inflation has started to fall and as a result, most high street and specialist lenders have started to drop mortgage rates. Consequently, there are more and more lenders offering rates below 5% for two year fixed rate mortgages***. Many experts are now predicting that rates have peaked and will start to fall****.
“Mortgage rates starting to fall has had a knock on effect to the housing market. House prices have going up three months in a row* and mortgage approvals for house purchases and remortgages increased in October**.
“The news is such a relief following a turbulent year. Whether you’re a homeowners looking to remortgage or a First Time Buyer or home mover hoping to borrow for a purchase, mortgage rates falling is good news.”
Should I fix now or hold off for a few months?
“With rates predicted to fall in 2024, many of my clients are asking me whether they should fix now or hold off for a few months.
“What I’m advising my clients is that none of us knows what is going to happen with rates. So – if your current deal is coming to an end – I would encourage you to review your options now, rather than waiting.
“All we need is for inflation not to behave as expected or international events to impact on the UK financial situation. And we could see rates rising again.
“With rates lower than they’ve been for a while, many of my clients are choosing to lock in a low rate now if their current deal is coming to an end within the next six months. And if rates fall before your deal comes to an end we can then review your mortgage rate again.
“Similarly, if you’re looking to buy a house, we can apply for a mortgage offer now. But if rates drop before you complete then we can always review your options.
“As your mortgage broker, we love to work hard for you. And if that means reviewing your rate several times, then that’s what we will do.”
We are not like other brokers. Our small, friendly team has over 80 years of experience in the mortgage and protection industry. We have over 70 five star reviews on Google and we have over 90 verified reviews on VouchedFor. And we would love to work hard for you.
We have access to thousands of mortgage products, many of which are only available through brokers. There are a very small number of lenders who don’t work with brokers. And, if you’re better off going with them, we will let you know.
To speak us about mortgage lenders cutting rates and what this means for your mortgage ring Your Mortgage Expert now on 01722 322683. Or visit our website and complete a contact us form and let us know when we can call you back.
The information contained within this article was correct at the time of publication. It is intended for information only and should not be used as a basis for purchasing any products. We cannot be held responsible for something that was correct at the time but subsequently changes or goes out of date. For further information, contact Your Mortgage Expert on 01722 322683.
**Source: https://moneyage.co.uk/Net-mortgage-approvals-increase-in-October-BoE-reports.php
***Source : https://moneyweek.com/personal-finance/mortgages/latest-UK-mortgage-rates
**** source : https://thismon.ee/a/11885727
YOU MAY NEED TO PAY AN EARLY REPAYMENT CHARGE TO YOUR EXISTING LENDER IF YOU REMORTGAGE.
A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
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