1 February, 2024
Mortgage rates are back in the headlines – but this winter the news is much more positive. Since the peak in average interest rates of around 6% at the end of last summer, fixed rates have dropped dramatically.
We are now starting to see some fixed products fall under the 4% threshold with Nationwide leading the charge having just launched a 5 year fixed rate at 3.85%. It’s just the latest lender to look to make their home loans more competitive, with a succession of names including HSBC and NatWest also opting to reduce rates.
The improving situation with inflation has played a part in the rate cuts seen over the last few months. As inflation has dropped, expectations have grown for a base rate cut this year, and that has fed into cheaper funding costs for mortgage lenders.
These cuts are good news for mortgage holders and we anticipate further reductions to come as the competition in the mortgage market heats up, but we don’t predict them going to go back to the super low rate we have become accustomed to just yet. We do, however, expect it to be enough of a shift to make a material difference for remortgagers who were dreading the hunt to find a new deal and those buyers who had been priced out of the market.
Our mortgage broker partners appreciate the importance of not only securing the best product at application for our clients, but continually reviewing the rates on offer throughout the application process and beyond so our clients they know they have the best rate secured.
The mortgage market remains fast paced and we will see more mortgage wars in 2024, which makes having a broker on your side with the up to date information at their fingertips a very valuable asset indeed.
Please contact your local Field Palmer office to talk through your individual circumstances or to make an appointment.
023 8042 2600
bitterne@fieldpalmer.com
023 8078 0787
shirley@fieldpalmer.com
023 8039 3255
woolston@fieldpalmer.com
023 8071 0402
lettings@fieldpalmer.com
023 8023 7577
blockmanagement@fieldpalmer.com
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