Mortgage rates have improved significantly
23/09/2024
- The Bank of England voted to keep rates at 5% in the September meeting, having cut them in August, stating more cuts are on the cards if inflation stays low.
- The latest consensus forecast for the Bank rate is to be 4.7% in Q4 2024, suggesting economists expect one more 25 basis point cut before the year end.
- Mortgage rates have already fallen significantly, pricing in the potential for further interest rate cuts. A 5 year fixed mortgage (on a 75% LTV*) is now 4.3%, down from 5.2% a year ago and not far off the September 2022 rate (4.0%).
- Increased competition in the mortgage market suggests rates will go even lower over the next few months and will be further supported by any further Bank of England cuts.
- Notably the US cut interest rates this month: signalling that inflation was under control and that further cuts would be forthcoming. Source: Dataloft by PriceHubble, Bank of England, HM Treasury Consensus Forecasts. *Loan to Value
