Mortgage Rates on the Downswing: A Glimmer of Hope for First-Time Buyers and Home Movers

The mortgage market is finally showing signs of improvement, with several major lenders cutting their rates in recent weeks. This welcome news comes as a relief to first-time buyers and home movers, who have been struggling to get on the property ladder amidst rising interest rates.

Image: A graph showing the decline in mortgage rates

First Direct, a major lender, has reduced its mortgage rates by up to 0.17 percentage points, making it more affordable for people to purchase their dream homes. This move is expected to have a ripple effect, with other lenders likely to follow suit.

“We’re pleased to be reducing our rates across our range of two, three, and five-year fixed mortgages, across LTVs from 60% to 95%,” said Liam O’Hara, head of mortgages at First Direct. “We see the highest demand for those products, and today’s changes will help people making their first steps on the ladder, or those moving into their next home.”

The Bank of England base rate is expected to be reduced from its current 16-year high of 5.25% at the next vote on August 1, which could lead to even more lenders cutting their mortgage rates. This is a positive development, as it will make homeownership more accessible to a wider range of people.

Image: A person filling out a mortgage application form

In addition to the rate cuts, there has been an increase in the number of mortgage products available, particularly for those with low deposits. According to financial information website Moneyfacts, there are now 361 mortgage products available for people with 5% deposits, the highest total since May 2022.

This is great news for first-time buyers, who often struggle to save for a large deposit. With more options available, they will have a better chance of securing a mortgage and getting on the property ladder.

As the mortgage market continues to evolve, it’s essential for buyers to stay informed and shop around for the best deals. With rates on the decline and more products available, now may be the perfect time to take the plunge and invest in a new home.

Image: A person holding a key to their new home