Mortgage Rates on the Move: What’s Next for Homebuyers?
The UK mortgage market is experiencing a significant shift, with lenders cutting rates left and right. First Direct is the latest to join the trend, reducing its mortgage rates by up to 0.17 percentage points across its range of two, three, and five-year fixed repayment mortgages. This move is expected to benefit first-time buyers and home movers alike.
Mortgage rates are on the move, but what does it mean for homebuyers?
The rate cuts come on the heels of similar moves by major lenders, including Halifax, HSBC UK, Barclays, Santander, NatWest, and Yorkshire Building Society. Economists predict that the Bank of England base rate will be reduced from its current 16-year high of 5.25% at the next vote on August 1, which could lead to even more competitive mortgage rates.
“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 mortgage market is becoming increasingly competitive, with lenders vying for business and ramping up their summer sales. This has led to an improvement in the choice of mortgage products available, particularly for those with smaller 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.
Mortgage products are becoming more accessible, but what does it mean for first-time buyers?
As the mortgage market continues to evolve, it’s essential for homebuyers to stay informed and take advantage of the best deals available. With rates on the move, it’s never been more important to shop around and find the right mortgage for your needs.
Homebuyers are spoilt for choice, but what does the future hold for the mortgage market?
The future of the mortgage market is uncertain, but one thing is clear: homebuyers are in the driver’s seat. With lenders competing for business and rates on the move, it’s an excellent time to enter the market or remortgage. Whether you’re a first-time buyer or a seasoned homeowner, now is the time to take control of your mortgage and make the most of the current market conditions.
