Opportunities Surfacing as Mortgage Rates Start to Fall!

Looking for the latest mortgage and financial news, along with expert opinions and advice on the current mortgage markets?
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Jodi Spreadbury

Mortgage rates over the last two years have got borrowers’ heads in a spin. Fluctuations in the market make it impossible to be confident whether you’re getting a good mortgage deal or not. For now, borrowers can breathe a slight sigh of relief, as mortgage rates are finally falling again.

We saw steady increases in rates throughout 2022, but they peaked with Liz Truss’ stint in parliament giving interest rates of almost 6%. There seemed to be a turning point at the start of 2023 when those percentages started to reduce to just below 4%.

Then summer of 2023 hit. And interest rates rocketed to 6.85%, leaving many customers in disarray, unaware of how to pay their mortgages during a cost of living crisis when the economy seemed against them. Thankfully we’ve seen slow reductions over the last 3 months, and are starting 2024 with some great news of rates under 4% for the first time since March 2023.

After such a tumultuous time over the last two years, there is very little trust in the market for borrowers. Constant economic changes make it difficult to plan ahead and be confident in your decision-making when it comes to securing an affordable mortgage.


What happens now?

Now, the market needs to establish some consistency. Rates need time to level out for at least six months so the market can recover from the drastic highs and lows of the last two years.

Bank of England has been increasing the base rate since the start of 2022, intending to get inflation under control. However, with no increases from August 2023 and with inflation reducing, is this enough to keep the market in a comfortable position where lenders can continue to offer lower fixed rates to customers?

Better recent mortgage conditions have led to an increase in the number of successful mortgage applications and house sales rising again. With an improved outlook in the market, many consumers are thinking about what this means for their mortgages and whether switching lenders or plans is a wise move.

What are your options?

For those looking to borrow, lower rates are great news. Anyone signing up for a two or five year fixed-rate term over the next six months is likely to get a more affordable mortgage than in recent months. For customers on an existing fixed term with higher rates than the market is displaying now, the question is whether to remortgage for a better deal.

For borrowers coming to the end of their fixed-rate term in the next 6-12 months, it can be difficult to decide what to sign up for when rates could decrease even further at any moment over the coming weeks and months.

If you’re unsure what your options are, we always recommend speaking with a trusted, specialist mortgage advisor. Here at The Mortgage Broker, we’re constantly reviewing interest rates to stay on top of the latest updates in the market so you don’t have to.

Using our knowledge of the market, we can swap you to a lower-rate mortgage if one becomes available before your new mortgage deal is completed. We take care of the research and complete all the checks for you, saving you valuable time and money.

We’ve got our finger on the pulse.

Our market expertise allows us to consistently ensure you’re getting the best deal on your mortgage based on the current economic conditions. Often, customers choose to go with a big-name mortgage lender because of their trusted service, but many smaller lenders have great rates and products that aren’t available on the high street that can be more suited to your needs.

We regularly meet with lenders to learn about new product launches, updates and economic forecasts so we always have our finger on the pulse. Our specialist advisors take the time to understand your financial situation and goals, so we can provide you with the right mortgage options that are affordable and cost-effective.

A positive outlook for homeowners.

The positive shift in the economic market is welcome news for borrowers. Rates are predicted to continue decreasing over the next few months, with the hope that rates will settle and become consistent at a figure that is more manageable for people to afford their mortgages.

No matter your situation, there are always options on the market that ensure you can secure a mortgage that’s cost-effective and you can be confident with your financial decision-making.

If you’re looking for advice on your mortgage, get in touch with our team. Whether you need a professional opinion for peace of mind or are searching for a suitable mortgage, we’re on hand to help.