Are Mortgage Interest Rates Coming Down This Summer?

Introduction

As we approach the warmer months, homeowners and prospective buyers are keen to know whether mortgage interest rates will see any changes. Let’s delve into the current trends and expert opinions from our senior mortgage broker Daniel Campbell.

The Current Landscape

Interest rates on mainstream five-year fixed mortgage deals are set to drop below 4% over the next week or two, marking the first time in over six months that they’ve been this low from a high-street lender. Meanwhile, two-year fixes are also expected to fall below 4.5%. (expected...who knows what could happen right?)

Factors at Play

1. Bank of England Base Rate: The Bank of England’s base rate, which influences mortgage rates, has remained steady at 5.25% for several months. However, market analysts predict a potential rate cut in 2024.

2. Lender Competition: High-street lenders are responding to market dynamics by offering competitive rates. For instance, HSBC cut its cheapest five-year fixed mortgage to 3.94% in January causing other lenders to follow suit.

3. Inflation Trends: Falling inflation rates may prompt further rate adjustments. The Bank of England previously hinted at rate cuts after inflation slowed to 2% (in line with its target). We are currently at 2% so rates could drop within the next few months.

Expert Opinions

While some experts anticipate a slight decrease in rates this summer, the consensus leans toward more meaningful changes later in the year or early 2025. Keep an eye on lender announcements and market developments.

Conclusion

If you’re considering a mortgage, now is an opportune time to explore your options. Consult with a financial advisor to make informed decisions based on your individual circumstances.

Remember, rates can fluctuate, so staying informed is crucial. Happy house hunting!

Disclaimer: The information provided here is based on current trends and expert opinions. Always consult a professional mortgage advisor for personalised advice. Book in with www.morefinancial.co.uk below.

Free Consultation

45

Book Now

Source: Will mortgage rates drop this summer? Here’s what experts say - CBS News: Interest rates should be held again in August, says rate-setter - BBC News