Mortgage Rates: Will They Fall or Rise?

The UK mortgage market is abuzz with anticipation as interest rates are expected to fall in the coming months. With the Bank of England’s base rate sitting at 5.25% since August last year, economists believe a cut is imminent. But what does this mean for mortgage rates? Will they follow suit and decrease, or will they continue to rise?

Mortgage rates have been on the rise, but will they fall soon?

According to data from MoneyfactsCompare.co.uk, the average two-year fixed residential mortgage rate is currently at 5.93%. While this is a significant drop from the July 2023 peak of 6.86%, it’s still much higher than December 2021 when it was 2.34%. As a base rate cut is expected this summer, financial experts say we could see cheaper deals come to the market over the coming few weeks.

Mortgage lenders are adapting to the changing market

In other news, Mansfield Building Society has introduced a criteria search function on its website, making it easier for brokers to determine where they can place their more complex cases. The search covers the mutual’s range of both residential and buy-to-let (BTL) lending, including its versatility and credit repair offer. This move is seen as a positive step towards making it easier for brokers to place cases with the building society.

Mortgage brokers will benefit from the new criteria search function

As the mortgage market continues to evolve, it’s essential for brokers and borrowers alike to stay informed about the latest developments. With interest rates expected to fall, and new deals emerging, it’s an exciting time for the industry. Will mortgage rates follow the base rate and decrease, or will they continue to rise? Only time will tell.

The mortgage market is constantly changing, and it’s essential to stay informed