A lot of good news to start the year
Last week, some great news hit the property market, with mortgage rates finally under 4%. Meanwhile, two-year fixed-rate mortgages are set to fall below 4.5%.
This is the first time in six months that we’ve seen these low figures from a high-street lender.
So could they fall further?
Potentially, yes. Market analysts are predicting the base rate will fall in 2024, meaning that we’re slowly starting to see some of the most competitive rates since summer 2023.
These improvements mean the top two-year fixes for home-buyers now cost around £960 per year less than the summer of 2023 (per £100,000 owed). The top five-year fixes for home-buyers are £720 per year less compared to the same period.
Elsewhere, there was excellent news for Buy To Let mortgages. In what could be considered a bit of a mortgage price war, lenders competed to bring the lowest rates we’ve seen since June 2023.
Reductions in many of the BTL mortgage lenders range from 0.5-0.75%, with many also offering incentives or five-year fixed rates at 6.09% (Shawbrook).
Richard Fearon, chief executive at Leeds Building Society, told the BBC over the weekend: "This mortgage price war has become very visible this week. There is always a Christmas slowdown, but we've seen the market come back with a bang and it's competitive.”
If you’re looking to move in 2024, or you would like more information on what this means to your home journey, contact us below.