Mortgage rate outlook for 2024

Competition is intensifying amongst mortgage lenders, with some major lenders announcing significant cuts on some of their products in January 2024.

 

According to financial information service Moneyfacts, the average rate on a two-year fixed mortgage has dropped to 5.62% compared with 5.93% at the start of the year. This is despite upheaval in the Red Sea, which could impact upon the UK economy. Disruption to vessels using the Red Sea and upheaval in the wider region could result in higher inflation, higher mortgage rates and lower activity than otherwise predicted. In spite of this, analysts predict that the lowering of inflation we have already seen will lead to the Bank of England cutting the benchmark rate of interest on several occasions during 2024. These predictions have lowered funding costs for lenders, leading to increased competition in the sector.

 

This is good news for those nearing the end of fixed-term mortgages, although rates will still be much higher than those seen before 2021.

 

More Posts.

Send Us A Message