Despite recent increases, experts predict mortgage rates will fall below 4% again in the coming months. However, there's uncertainty about the timing, with some anticipating a quick drop while others believe it could take several months.
Bank of England Mortgage rates fell below 4 per cent last summer for those who had the biggest amounts of equity, but the rates customers can obtain depend heavily on swap rates , which are determined by market forecasts for how quickly interest rates rise or fall. Rates climbed upwards over the autumn and are now above 4 per cent, but experts say they are likely to dip below this level again.
However, there is a clash of opinions as to when this could be, with some brokers believing it could be soon, while some say it could be several months away. David Hollingworth, associate director, L&C Mortgages : “I think that lenders will want to have a good start, so will continue to be as competitive as possible. The question is whether we will see the cost of funds dip to allow lower rates to blossom. A rate cut in February will already be priced in, so it’s hard to predict how much latitude lenders will have.“The recent cuts to fixed rates by lenders indicates that the market has found a level after the recent small but relatively rapid uplift in fixed rates. Some lenders will have gone too far and are readjusting now the dust has settled. “However, if there’s room for optimism and any indicators that the Bank may have more room for manoeuvre I expect we will see rates react quickly. “The forecasts on base rate movement next year seem to alter in how many cuts may feed through but three or four gradual cuts aren’t out of the question. As those feed through, it should help to ease mortgage rates, especially the shorter-term fixed rates.”“As long as there is sufficient margin then there will be a little battle for top spot to kick the year off, I would anticipating a tussle similar to the start of 2024, which will fizzle out by the start of April. Mark Harris, chief executive of mortgage broker SPF Private Clients : “The trend in new mortgage pricing is downwards but mortgage rates are likely to continue to yo-yo over the next three month
Mortgage Rates Bank Of England Interest Rates Swap Rates Economic Forecast
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
ADVICE COLUMN: Overview of property and mortgage market in 2025Mortgage advisor Kevin McCarthy looks ahead to the next 12 months in the mortgage market.
Read more »
NatWest drops mortgage rates - but households warned to 'manage expectations'Some mortgage lenders have been cutting rates after a turbulent month for the market
Read more »
HSBC among lenders cutting mortgage rates in boost for homeownersUntil last week, most mortgage lenders had been consistently upping rates
Read more »
Jump in average fixed mortgage rates recorded in December, says MoneyfactsLenders would need to grapple with future uncertainty surrounding interest-rate pricing while aiming to hit any year-end targets, the firm said.
Read more »
Barclays, Natwest and TSB cut mortgage rates but interest costs creep up...Prompt: GETTING on the property ladder can feel like a daunting task but there are schemes out there to help first-time buyers have their own home. Help to Buy Isa - It's a tax-free savings account where for every £200 you save, the Government will add an extra £50.
Read more »
Barclays cuts mortgage rates with experts predicting more pre-Christmas reductionsRates climbed for weeks after October's Budget, but some lenders are now making reductions again
Read more »