Silver lining is emerging for homeowners following recent surges in mortgage borrowing costs that have caused widespread concern and contributed to the fall in house prices – latest data shows that fixed rates continue to fall from the highs following September’s infamous mini-Budget, with many industry analysts forecasting that five-year fixed mortgage rates will fall back to below 4% in the New Year.
For example, the average two-year fix, which peaked at 6.65% on 20 October, according to Moneyfacts, now stands at 6.28%, while the five-year fix, which peaked at 6.51%, now sits at 5.07 per cent. The fall is owed, in part, to the fact that gilt yields, which dictate the cost of government borrowing and impact mortgage rates, have dropped back to pre-mini-Budget levels.
Market projections for how high interest rates will go next year have also fallen sharply, with many lenders expecting the base rate to peak at 4.5%, 1.5% lower than predicted in the wake of the September’s mini-Budget – however, with inflation remaining very high, further interest rates should’t be ruled out completely.
If you or a friend or family member has a mortgage or remortgage situation on the horizon, we are able to secure mortgage deals for our clients up to 8 months in advance of their current deal ending, with no commitment to take it if circumstances change, or if rates improve, during that time. To talk though your options, please contact Steve Padgham via e-mail at Steve.Padgham@fpgonline.co.uk or by calling 020 8614 4782.