Average mortgage rates have fallen to the kinds of levels last seen before Liz Truss’ infamous Mini-Budget in September 2022, in what is a timely boost for the housing market.
Rachel Springall (pictured), Finance Expert at Moneyfactscompare.co.uk, says buyers will “no doubt be thrilled to see mortgage rates drop, particularly the millions due to come off a cheap fixed rate before the year is over.”
swap rate movements
Mortgage rates shot upwards in the aftermath of the infamous ‘mini-Budget’, with the Moneyfacts Average breaching 5% just one week afterwards, and, by October, the rate had risen above 6%.
Springall says: “Fast forwarding to the present day, mortgage rates are much lower thanks to base rate cuts and swap rate movements. However, sticky inflation makes it less likely for the Bank of England’s Monetary Policy Committee to unanimously agree on making more cuts.”
It’s extremely positive to see a far more competitive lending market than only twelve months back.”
And Mary-Lou Press, President of NAEA Propertymark, says, “It’s extremely positive to see a far more competitive lending market than only twelve months back. Consumers have faced a double-sided challenge in recent years with elevated inflation and heightened base rates.
“Although we have seen three base rate cuts throughout the year to date, affordability has remained challenging for many. It will be a case of all eyes on the Bank of England on Thursday, as the next base rate decision is made.
“Also, with strong rumours of a potential overhaul for those in England and Northern Ireland regarding Stamp Duty, there will be close watch on the chancellor, as fiscal plans for the forthcoming year are shared within the Autumn Budget in only a few weeks’ time.”