“Over the past five weeks, the mortgage market has had the most stable period it’s seen since December 2021. Nothing has rocked the boat, which has meant while there’s been slight fluctuation, interest rates have remained relatively steady compared to the past 16 months or so.
The stability has brought good news to the market. Two of the largest lenders have reduced their rates by up to 0.4%, even though the Bank of England is expected to hike the base rate once again later in the year. For the first time in a long time, there’s a lot more positivity.
But we aren’t going to see rates suddenly drop back to a more normal level of between 3.5% – 4% anytime soon. Where we are now, this will be our normal until mid-2025. 2024 is going to look very similar, if not the same, to this point of 2023.
This is evidenced by current market activity. Most homebuyers and homeowners are locking into two-year fixed deals, rather than five. Most are hoping that by summer 2025 when they come to remortgage, the rates will be lower than the current 6%
Of course, this isn’t a silver bullet. There are many external factors at play that could change this trajectory, so it’s crucial you receive expert advice in order to make an informed decision about your next mortgage move.”