Good news for UK homeowners! Major lenders, including Nationwide, HSBC, and TSB, have recently slashed their fixed mortgage deals, signalling a potential breather for home loan costs that had surged close to 7%.
Last week’s data revealed a surprising drop in inflation for June, alleviating fears of multiple interest rate hikes. The Bank of England is still expected to raise rates by 0.25 percentage points to 5.25% next week, with forecasts of rates peaking at 5.75% in March next year, lower than previously feared.
Amidst rising housing costs and financial pressures on borrowers, the average two-year fixed-rate mortgage has dipped from 6.86% to 6.81%. Major lenders have introduced improved deals, and analysts suggest rates may continue to decrease.
While experts believe fixed mortgage rates may have peaked, borrowers on variable rates could still face increases with expected base rate hikes. Though rates won’t return to the ultra-low levels of the past, these reductions offer some relief. Remortgagers can benefit as well as hopeful buyers may find opportunities to enter the market.
While the mortgage market may still present challenges, these recent developments suggest that the tide is slowly turning in favour of borrowers. With economic uncertainties always looming, it’s essential to stay informed and make the most of these favourable rates while they last. So, if you’ve been contemplating a mortgage or a remortgage, now could be the right time to make your move!