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UK Mortgage Rates Fall – Why Now is a Good Time to Buy

19 Jan 2024 | Blogs

It’s been a bit of a rollercoaster for house buyers over the past few months. However, we’re pleased to see this week’s headlines, confirming that mortgage rates are continuing to fall.

Recent news has seen many lenders cut mortgage rates to below 4%. For example, Santander have launched five-year fix for those mortgaging at 3.89%, and a five-year fix for home movers at 3.94%. Barclays are now offering a two-year fix at 4.17% for all home buyers. Both of these lenders will require you to have at least a 40% deposit or 40% equity in your home.

We spoke to Scott Richford, Mortgage and Protection Adviser at New Homes Mortgages Ltd, about what this means for house buyers. Here’s what he had to say:

“We have seen interest rate reductions from lenders for a number of weeks now, with significant cuts being made by several lenders during that period. This has seen us receive a record number of enquiries since the beginning of 2024. In addition, a number of lenders have been willing to open up criteria points to enable us to gain access to mortgages for people who may not have been able to secure a mortgage six months ago.

“We have seen reports of the second-hand market picking up too, with the number of properties being listed and the number of offers being made both increasing. A lot of the big rate reductions I have seen have been at higher loan to value, so those clients with smaller deposits have also been able to access better rates across two, three and five-year fixed rates.

“A question I often get asked is ‘will the deals currently being offered by builders last forever?’ and whilst I don’t have a crystal ball, I’d say probably not. If you use a broker, you can take a deal now and if rates fall that broker should be looking to review rates before you complete to see if you can access something even better, so you get the best of both worlds.

“I still feel that now is a great time to buy, so be sure to speak to a broker to get you access to the best deals available.”

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