When Will Mortgage Rates Go Down?

November 16, 2022

Anyone who keeps half an eye on the news will be aware that mortgage rates have soared over the past year, from a starting point of 2 or 3%, to well over 6% in some cases. The causes of this are varied, from the aftershocks of the pandemic, to the war in Ukraine, rising inflation, and the market shock caused by the surprise of the September mini-budget.

All this is bad news for current mortgage holders coming to the end of a fixed term five- or two-year deal, those on variable tracker mortgages, and for those seeking to get on the property ladder for the first time. It seems that there is a permanent downward news spiral at the moment, with little positive or encouraging events being reported.

However, there may be some good news on the horizon, as This is Money reports. Despite the Bank of England raising interest rates to 3% as expected, many major high street lenders didn’t make corresponding rises to their mortgage rates, with some of the biggest names, including Yorkshire Building Society and HSBC, reducing their rates slightly instead.

Interest rates are now expected to peak some time next year at 4.5%, rather than the 5.5% which some forecasters recently predicted. The industry consensus currently seems to be that this bodes well for mortgage rates, which could fall to 4% or even lower by next year.

What should you do if you need a new mortgage deal?

If you can’t wait until next year to secure a new deal, it’s advisable to seek the advice of an experienced mortgage broker. They will be able to make market comparisons from a wide range of lenders, and will be well placed to secure you a competitive deal which suits your circumstances.

If you would like to talk to adverse credit mortgage brokers in the UK, please get in touch today.

Your home may be repossessed if you do not keep up with your mortgage repayments.

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