Managing director of mortgage broker Anderson Harris, Adrian Anderson said: “The property market is historically quieter during the summer months hence lower mortgage rates may help activity in the market and help give buyers some confidence.
“There is a lot of pent up demand from buyers ‘waiting to see what happens to mortgage rates’.”
There were 5.9 new prospective buyers for every property for sale in May, according to estate agency Knight Frank. Buyers have only faced less competition once during the last five years, two months after the mini-Budget in December 2022.
However, Chris Sykes of Private Finance warns that while cuts may give “some zest” to the summer market, they aren’t significant.
“In honesty the drops are not major and we are basically returning to similar rates as to what we had 6-10 weeks ago, so this isn’t at all groundbreaking from a finance point of view. It could keep people waiting and hoping for further rate improvements, that remains to be seen,” he said.
Liam O’Hara, head of mortgages at lender First Direct added “The market has a tendency to move quickly and pricing is influenced by a complex range of factors, which means it’s difficult to predict the trajectory of rates in the next few months.
“There is no set timeline on rates coming down further so mortgage holders may want to consider making the most of deals while they’re available. Some lenders do allow the transfer of booking fees within a certain period if rates come down more, so it’s also worth checking with your mortgage provider if that’s an option.”