Mortgage Market Update Spring 2024

13 May, 2024

The first quarter of this year has been extremely busy with regards to purchase applications; during a period of lowering rates, the number of enquiries and mortgage applications (especially from First Time Buyers) were at very high levels as lending became more affordable

In recent weeks, we have seen interest rates creep back up – mainly in reaction to a mixed inflationary picture from the US and UK and uncertainty in the markets as to when the Bank of England are going to cut the base rate – this however hasn’t seemed to have had too much impact in demand, with viewing levels and resulting sales still very robust

The recent decision by the Bank of England to hold the base rate at 5.25% was widely expected, but the Bank of England governor has indicated a rosier outlook for the UK economy and with predictions that inflation will fall further, most analysts believe the Base rate will start to fall late summer. The expectation will then be that the base rate will continue a slow trend downwards into the autumn and beyond

We should thus see lenders start to reduce their fixed rates accordingly over the coming months

As always, Field Palmer through their mortgage consultants have access to the whole of the intermediary marketplace and keep abreast of mortgage rates on a daily basis – which is crucial in a continually shifting mortgage market!

Contact you local Field Palmer office to be put in touch with a mortgage consultant

Ben Kany

Mortgage and Protection Consultant

Choice Mortgage Solutions