Mortgage Rates Start 2024 With a Bang

Cheers to Lower Rates!

What an exhilarating start to the year in the mortgage world! As predicted, 2024 kicked off with a flurry of lenders dropping their fixed rates. Some were changing rates daily to stay ahead of the competition and lock in their share of business. Kudos to Santander and Halifax for leading the charge with some fantastically low rates. Thumbs down to Nationwide for waiting until January 21st to drop their rates, leaving many clients completing at month’s end stuck with higher rates than necessary. Clearly, a tactical manoeuvre to see competitors’ hands before undercutting them, but not helpful for loyal customers!

Feeling the Pinch

As February starts, inflation remains stable at 4% and swap rates have ticked up slightly, prompting some lenders to raise rates again. The UK officially entered a recession in late 2023, though reportedly the softest recession on record, so hopefully short-lived.

Crystal Ball Gazing

Many of you are likely wondering when rates may start dropping again. The short answer: don’t hold your breath for too soon or expect a return to 2009-2022 lows. Current rates are on par with pre-2008 levels then considered low. The good news is we seem to have stabilised. Barring WWIII, hopefully, normalcy returns!

The mortgage world is always changing, but lower rates are here for now. Take advantage of these cheerful times, get your finances in order, and start the year off right with a lower mortgage payment! The future is bright. Get in touch if you would like to discuss your options.