Mortgage rates have been coming down since last year and are expected to continue to fall down to pre-pandemic levels. This is great news to mortgage holders across the UK and also first time buyers.
Mortgage rates have been dropping over the past months, however, there is no way of knowing how they will evolve for the rest of the year. With the looming cost of living crisis taking over and the increase in borrowing costs, this has since had a knock on effect for the demand for new homes. Mortgage approvals have also dropped since January and has been at the lowest level since the beginning of the financial crisis.
The welcomed news is that even through the Bank of England has increased the base interest rate eleven consecutive times, mortgage rates have been going down since October and are expected to continue to call through 2024.
Now may be a good time to think about fixing your mortgage rates for the long run whilst the interest rates continue to rise. The good news for existing mortgage holders us that the majority of low rate deals are targeted at existing homeowners either looking to reportage or move homes. The reason behind this is because they are classed as low risk borrowers and have a high level of equity or even deposit. However, it also a good idea to seek independent financial advice to explore your options as well as mortgage brokers to make sure you are securing the best rates.