Could interest rates be falling?

April 13, 2023

If you’re a homeowner or have been waiting for the right time to re-mortgage or get onto the property ladder, the recent interest rate announcement from the International Monetary Fund (IMF) is significant news. 

According to the IMF’s forecast, interest rates in major economies are expected to fall in the future due to low productivity and ageing populations. This announcement will come as welcome news for many homeowners who have seen their mortgage payments increase as the Bank of England has been raising interest rates since December 2021.

The Bank of England’s decision to raise interest rates was made to combat the rate of price rises, inflation. UK inflation is at its highest for nearly 40 years due to rising energy prices and soaring food costs, among other factors. These increases have had a direct impact on mortgage rates.

However, the IMF has stated that these increases in borrowing costs are likely to be temporary, and once inflation is brought under control, central banks in advanced economies are likely to ease monetary policy and bring interest rates back towards pre-pandemic levels. This is welcome news for the property market, and it is likely to increase demand for property in the coming months.

Whilst the IMF did not provide a specific timeline for when interest rates would fall back to lower levels, but in good news, the heights of standard 6% from autumn are gone, with some mainstream lenders now offering 3-4%. If interest rates fall to pre-pandemic levels, it’s likely that demand for property will continue to rise, so now could be a prime time to consider your moving plans for the months ahead, to ensure you’re ahead of the curve in finding your next property.

If you’re considering your options, we’d be happy to share our own advice and if you’re looking at your affordability, we can introduce you to our independent financial advisors, who have access to the latest rates and a wide range of mortgage products to suit all circumstances.

Speak with your local branch today:

Camberley (01276) 743888,
Farnborough (01252) 375999,
Hartley Wintney (01252) 844015,
Hook (01256) 764666,
Fleet (01252) 812121,
Ash Vale (01252) 353030,
Aldershot (01252) 983730,
Yateley (01252) 597900,

Subscribe to our