Mortgage Rates Update

Are interest rates about to plummet?

 

Having barely shifted since last autumn, many analysts expect that interest rates may start edging down. What will that mean for mortgage borrowers and anyone looking to remortgage?

 

Time for a fall?

Most analysts agree that interest rates have peaked but there is less consensus on exactly when they will start to drop.

 

One forecast1 has suggested that Bank Rate rates will remain at current levels until June this year, when a series of cuts will see Bank Rate gradually fall to 3% by the end of 2025. Other researchers are less optimistic. One2 suggests that rates will only decrease to 4% by the end of next year.

 

Only one way

Despite these differences, nearly all forecasters think that interest rates will go down in the coming years.

 

This should come as a relief to mortgage borrowers, many of whom have seen their mortgage payments skyrocket after the ultra-low rates of the past decade ended abruptly.

 

However, with rates unlikely to fall a large amount this year, some will still experience a shock if they need to remortgage in 2024.

 

Buckle up

The road ahead may remain bumpy, but we are here to help you through it!

 

Your home may be repossessed if you do not keep up repayments on your mortgage. You may have to pay and early repayment charge to your existing lender if you remortgage.

 

1 Capital Economics, 2024

2 Berenberg Bank, 2024

Hey Mortgages IconHey Mortgages

Adamson House, 106 Wilmslow Road, Didsbury, Manchester

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    Great service and support. We had a complicated set of needs and our advisor couldn't have been more helpful. Great attention to detail. Would highly recommended
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    We have used Thomas for a number of private and business mortgages. Thomas is a personable and knowledgeable advisor. There is no hard sell just a clear overview of the options. Once you choose a mortgage Thomas drives things personally … More ensuring minimum hassle and on time completion!
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    Couldn't have asked for better advice and support to buy my first house and negotiate my recent remortgage. Trustworthy, honest and clear explanations through the whole process. Thank you Cai!
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    Thomas at Hey Mortgages has now successfully brokered two mortgages for me and they were both arranged with a minimum of hassle.
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    Communicated well, helped me through my mortgage step by step. Highly recommended.