Lower rate comes as good news for homeowners, many of whom have been stuck on pricey deals. Experts reveal how low they think mortgage rates could go down
Mortgage holders have seen rates soar after the base rate rose from 0.1% to 5.25% in the past four years has finally opted to cut the base rate from 5.25 per cent after seven consecutive meetings of holding it at a 16-year high.who have seen rates soar after the base rate rose from 0.1 per cent to 5.25 per cent in the past four years.asked experts how much further mortgage rates could come down this year – and whether now is the right time to switch deals.
“We can anticipate the downward trend in fixed rate costs to continue into next year, as markets price in further bank rate cuts and lenders use every opportunity to stay ahead of the competition by actively passing on reductions in swaps. With this in mind a 3.5 per cent five-year fixed rate could be within reach by early next year.”
Aaron Strutt of brokers Trinity Financial said: “The cheapest five-year fixes are all priced around 4 per cent so with the base rate cut the hope is they would come down by around 0.2 percentage points – although we need to see how the money markets react. The cost of funding has been coming down anyway.
“Today’s decision to cut a little sooner than many had previously anticipated should only help to add further weight to those reductions. We can therefore expect to see further pricing improvements in fixed rates, as lenders continue to fight hard to gain a share in a very competitive market.”should secure a rate now and then keep a close eye on rate movements to capitalise on any further movement, whilst avoiding any risk of drifting onto an expensive variable rate.
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