Mortgage Market Update

- Fri 22 Sep 2023

At the start of September 2023, product availability across mortgage lenders is showing to be the highest since February 2022*. With this increase in choice combined with two and five-year fixed mortgage rates falling on the average, some signs of stability in the mortgage market may be showing.

These reductions may indicate that the mortgage market is starting to recover after a turbulent couple of years for many looking to purchase with a mortgage or refinance their home. We have seen in recent months that some lenders withdrew mortgage products from their range due to uncertainty as to whether the Bank of England would continue to increase the base rate. Other lenders increased their rates attempting to factor in these future base rate increases, which caused the average mortgage rate to increase steadily.

With what feels like an age we may finally be seeing light at the end of the tunnel of a turbulent few months. With interest rates starting to reduce, we are typically seeing rates between 5%-6%. The Bank of England are continuing to whisper that we are pretty close to the peak height of interest rates**.

It is still the case where five-year fixed deals are cheaper than two-year fixed deals, which could show that interest rates could be reducing in the medium term***. It has been spotted that mortgage demand has been at its lowest since the 1990’s. Whether the mortgage market improves in the coming weeks and months will depend on whether swap rates fall, which may cause lenders to cut their fixed rate deals.

To discuss your options please get in touch with Bradleys Financial Management on 01395 222391, or email [email protected] today.

Bradleys Financial Management Ltd and Bradleys Estate Agents Ltd are two different entities and the estate agents act as introducers for Bradleys Financial Management.

Sources:

1. click here.

2. click here.

3. click here.

Mortgage Market Update

More Stories