Mortgages: Interest rates starting to drop

August 24, 2023

Major lenders are starting to reduce mortgage rates.

With tentative steps from many lenders, there are some positive signs for those looking to mortgage or re-mortgage their home.

This month, The Guardian reported cuts being made by Britain’s major mortgage lenders, including Halifax, HSBC, Natwest and Nationwide. The recent drop in inflation has likely helped to spur on these reductions.

Lender Halifax has reduced rates across two and five-year fixed rate mortgage deals. Some mortgage lenders are also launching new deals to coincide with the reductions.

As welcome news to many borrowers, mortgage rates are finally dropping from the highest seen in approximately ten years. First-time buyers waiting for rates to lower may finally be able to step foot on the property ladder. The recently introduced Mortgage Charter also offers support for those challenged by their current mortgage.

If you’re considering a variable rate mortgage, with interest rates now showing signs of steadying it’s important to seek independent advice to be fully aware of any possible risks and market considerations.

The outlook for interest rates is potentially going to improve next year, so it’s worth keeping in mind if you are opting for a new fixed rate mortgage, you could benefit from a more short term deal.

With so much to consider we would strongly recommend getting some independent mortgage advice, we’d be happy to introduce you to one of our trusted partners.

Your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it.

Sources:
https://www.bbc.co.uk/news/business-66459129
https://www.theguardian.com/money/2023/aug/09/four-of-britains-biggest-lenders-cut-rates-on-fixed-mortgage-deals
https://www.ft.com/content/277efe07-63a7-43aa-bd7f-69f13eab4914

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