After almost two years of increasing borrowing costs, the Bank of England is expected to lower UK mortgage rates further.
Since the middle of the summer, mortgage prices are declining as the markets react to better-than-expected inflation and look ahead to the decision by the central bank.
“Fixed rate rates should continue to get cheaper.” “The best rates are slowly slipping down, but the positive inflation numbers and the holding of base rate will add more momentum to this trend,” said David Hollingworth. Associate director at L&C Mortgages.
We could see more cuts quickly feed through the market, which will give borrowers confidence that we’re now at the peak or very near it.
TSB, Nationwide and NatWest announced reductions this week. Nationwide, Virgin Money, and Yorkshire Building Society are among the providers who have offered fixed five-year rates under 5 percent.
Aaron Strutt is the director of Trinity Financial.
These cuts are welcomed by those in the property industry, as well as prospective homebuyers who have fixed-rate mortgages coming to an end. Moneyfacts reports that the average two-year mortgage cost was 6.58 percent on Thursday. This is compared to the 15.-year-high of 6.85 percent at the beginning of August.
As lenders compete to attract customers in a slowing housing market, they have offered the best offers to those who are buying a house. Remortgaging customers are not offered the best deals.
UK Finance figures show that around 800,000 borrowers are expected to reach the end their fixed-rate agreements in the second half this year. In 2024, another 1.6mn fixed-rate deals will expire, adding to the worries of household finances and cost of living.
Nick Leeming of Jackson-Stops estate agents said that after the BoE’s razor-thin vote, “a momentous relief can be heard all over the UK, particularly those who are. . . Mortgage borrowers whose fixed rate deals are ending”.
According to official data published on Thursday, private rents rose 5.5 per cent year-on-year in August. This is the largest annual increase since records began seven years ago. According to official data released on Thursday, private rents increased by 5.5% year-on-year in August. This is the highest annual increase recorded since records began.