By Dom Spencer - January 4th, 2024 Posted in Finance News No comments

mortgage rate cuts

In a significant development yesterday, major lenders have decreased mortgage rates in an effort to attract borrowers nearing the conclusion of their fixed-term deals.

This announcement is poised to offer timely relief to homeowners who have been grappling with the challenge of finding affordable renewal rates.

Many have been delaying remortgaging or waiting on the Standard Variable Rate (SVR) while assessing the dynamics of the mortgage market.

For those looking for a new deal, now might be the best moment to strike while the iron is hot and secure a favourable rate.

Following the government hitting its inflation target in November, we delved into the potential impact of a 4.6% inflation rate on homeowners.

Today, the UK’s largest lender, Halifax, took a bold step by reducing specific rates by nearly one percentage point, causing a reaction from competitors in the mortgage market. (1)

Starting from January 4, HSBC is set to follow suit, introducing a five-year fixed rate for remortgage customers below 4%, featuring a headline rate of 3.94% for those borrowing up to 60% of the property value.(2)

These adjustments undoubtedly mirror the industry’s response to the decreasing inflation rate with David Hollingworth, L&C Mortgages Associate Director, remarking, “We thought the New Year would start with a bang, and that’s proving to be the case.(3)

While this news is positive for borrowers, the future still remains uncertain, with the market increasingly described as “fast-moving” – meaning rates could quickly swing back the other way.

The Bank of England maintains that the base rate won’t be cut in the near future, likely stopping any further decreases in mortgage rates. (4)

In many cases the best advice is to take advantage of the attractive deals available today, as navigating future market shifts carries a huge element of risk.

For those considering a remortgage, our advisors are ready to guide you through your options. Taking proactive steps today could secure you a deal that surpasses anything on the horizon.

If you would like to discuss your options in an initial, free consultation, feel free to contact us at 01489 346624.

Act now to make informed decisions and capitalise on this opportune moment in the mortgage market.

We believe, in this ever-changing landscape, our mortgage advisors are here to act as a compass, steering you towards financial stability.

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Financial info: Your home may be at risk if you do not keep up repayments. Think carefully about securing debt against your home. When consolidating existing borrowing, be aware that extending the term could increase the amount repaid.


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