Mortgage Rates on the Move: What’s Next for Homeowners?

The mortgage market is abuzz with activity, as NatWest announces a crucial cut to its home loan rates. This move is expected to spark a wave of interest rate cuts from other major UK lenders, bringing welcome relief to millions of homeowners.

The decision to lower fixed-rate deals by up to 0.17 percentage points comes on the heels of a significant drop in inflation, which has finally fallen to 2% after three years. This reduction in mortgage rates is expected to have a ripple effect on the entire housing market, making it easier for people to remortgage or buy a property.

Experts are hailing the move as a positive step, particularly for those who are remortgaging or buying a property. Riz Malik, Director at R3 Mortgages, notes that lenders are still willing to lend, and NatWest’s move is a clear indication of this.

Mortgage rates are on the move

But what does this mean for homeowners? With the base rate decision looming, all eyes are on the main mortgage lenders to see what they will do next. Will we see a series of interest rate cuts through the summer months?

Private Rents on the Rise

While mortgage rates are falling, private rents are still on the rise. According to the latest data from the Office of National Statistics, private rents in the UK increased by 8.7% in the 12 months to May 2024. This is down from the record high rise of 9.2% in April, but still a significant increase.

The biggest rent increases were seen in Northern Ireland, where average rents went up by 10.3% in the 12 months to March. London saw the highest average monthly rents, at £3,397, while the lowest average rents were found in Dumfries and Galloway in Scotland, at £480.

Private rents are still on the rise

Berkeley Expands into Build-to-Let

In other news, UK housebuilder Berkeley is branching out into the build-to-let market. The company is establishing its own build-to-rent platform, which will focus on building homes to let in London and the South East.

Berkeley chief executive Rob Perrins notes that the company has identified 4,000 homes across 17 of its sustainable and well-connected brownfield regeneration sites as an initial portfolio for this platform.

Berkeley expands into build-to-let

What does this mean for the housing market? With the demand for rental properties continuing to outstrip supply, Berkeley’s move into the build-to-let market could provide a much-needed boost to the sector.

Conclusion

The mortgage market is on the move, with NatWest’s rate cut sparking a wave of interest rate cuts from other major UK lenders. Meanwhile, private rents are still on the rise, and Berkeley’s expansion into the build-to-let market could provide a much-needed boost to the sector. As the housing market continues to evolve, one thing is clear: it’s an exciting time for homeowners and renters alike.

The housing market is on the move