Mortgage rates significantly lower at the start of 2024
The beginning of a new year has seen a significant downward movement from multiple mortgage lenders, who have reduced their rates to some of the lowest in several months.
This week, HSBC unveiled a new five-year fix deal which allows remortgaging customers to secure a rate of 3.94 per cent, whereas previously the lowest rate option was 4.79 per cent. For two-year fix deals, the cheapest rate has gone from 4.93 per cent to 4.49 per cent.
Likewise, First Direct has also announced a cut in rates. Their new options include a 10-year fixed mortgage at a rate of 3.99 per cent for people with a 40 per cent deposit, down from the previous rate of 4.97 per cent. The five-year option has also gone down from a rate of 4.64 per cent to 3.99 per cent.
More recently both Barclays and Santander have confirmed that they will reduce the residential fixed rates on some of their products by as much as 0.82 per cent. Other cuts Santander has made includes a new a five-year fix at 3.89%.
Other lenders such as Leeds Building Society and Halifax have also reduced their prices, and those yet to announce their rates are expected to follow suite. According to Moneyfacts, the average rate across the country has fallen from 5.92 per cent to 5.87 per cent.
The reduction in rates along with a significant downturn in inflation is good news for property seekers, who now have much better options than they had in 2023.
Jason Blunden, Managing Director at Evolve Financial Solutions, said: “The way that inflation has come down should lead to multiple base rate cuts this year, hopefully leading to further fixed rate cuts. Already with SWAP rates reducing each week now, our customers are seeing that with lower and lower fixed rate options.”
For free mortgage advice, call Evolve on 01473 603 211 or visit https://www.evolvefs.com/.
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