GOOD NEWS ON MORTGAGE RATES

News at Ware & Co | 17/02/2025

  • A couple of the major lenders have launched mortgage deals with interest rates of less than 4% (60% loan to value).
  • Interest rates are typically lower for people with larger deposits, but even in this scenario, rates have been sitting stubbornly at over 4% for the last year, particularly for 2-year fixed deals. The Bank of England's rate cuts have been slower to materialise than originally expected.
  • With the Bank of England reducing rates in its February meeting (from 4.75% to 4.5%) and the consensus forecasts suggesting rates of 3.75% by year end, this has given lenders the confidence to get more competitive.
  • While the sub-4% rates are currently only available for those with larger deposits, this still represents a positive shift in market sentiment and shows where rates on other products might move over the next few months.
  • This flurry of increased competition in the mortgage market is welcome news for borrowers. 
 
 
Source: Dataloft by PriceHubble, Bank of England, Santander, Barclays

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