Mortgage rates continue to tumble, making borrowing more affordable

As estate agents, we stay up-to-speed with finance news, as mortgage rates have a huge impact on buying and selling activity. As a rudimentary reminder, the lower the mortgage rate, the cheaper monthly repayments become. We know many home movers have delayed buying a property until mortgage rates eased and that has definitely happened as we start 2024.

In fact, indications show buyers have started the new year full of home moving intent. The latest data from Twenty7tec revealed the first week of January 2024 was the busiest-ever start to a new calendar year for mortgage searches. To put demand into context, Wednesday 3rd January was the busiest day of the first week in January, with well over 80,000 mortgage searches taking place. This is a 5.53% increase in searches, when compared to the first week of 2023, and it puts the day in the top 50 days ever for search volumes on the Twenty7tec platform.

As well as searches hitting a record high, the number of mortgage products available is also peaking. When appraising the new 2024 mortgage market, Moneyfacts found 5,899 home loans across all deposit sizes at the start of January - the highest level of availability in more than 15 years.

Those looking for a mortgage not only have more choice, they’ll also have a pleasant rate surprise. We’re pleased to report that in January, our financial news feeds are chock full of the same story – rates are being reduced by lenders. The roll call of banks and building societies who are cutting the cost of borrowing is nothing short of impressive.

The following mortgage market snapshot should fill you with positivity: Santander launches sub-4% fixed rates; Skipton reduces 99 mortgage rates by up to 0.66%; Barclays decreases rates by up to 0.5% and the Co-Op Bank announces some product rates are being cut by 1.07%, with rates as low as 3.89%.

Lower mortgage rates have also been extended to more specialist borrowers, which is a great boost to the property market. Adverse credit, shared ownership and Right to Buy mortgage products offered by Pepper have also been made more accessible, with rate cuts of up to 0.98% across its entire range of mortgages. Over at CHL Mortgages, rates for complex buy-to-let mortgages have been reduced by up to 0.78%.

Using a mortgage adviser to find your next home loan is highly recommended. They will have access to the ‘whole-of-market’, and not just one lender’s deals, and will be offered products not available directly to borrowers.

A mortgage adviser will also have the software to track mortgage deals in real time, which is important when trying to secure the most favourable rate. In a climate like today’s, where lenders are slashing rates on a regular basis to see off competition, mortgages are added and rates reduced on an almost hourly basis.

We’d be pleased to introduce you to a trusted mortgage adviser, who will be able to work out current mortgage repayments based on affordability, current rates of interest and the size of any deposit you have. Contact us and we can make an introduction.

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