We’re heading towards the end of 2023 – and what a year it has been. It’s certainly kept our team of Maidenhead mortgage brokers on their toes. And now it’s approaching its end, our clients are starting to ask what’s in store for 2024.
So, here’s our take.
The going rate
Having weathered a few economic storms since we first opened our doors in 2005, our experience tells us that we’ve hit the bottom of the mortgage curve.
Inflation dropped to 4.6 per cent in October – its lowest level in almost two years. So, after many months of increasing inflation levels, the nation seems to be getting some respite. The good news is that mortgage rates have also been slowly decreasing, too.
The next question, then, is when will mortgage rates go down?
Mortgage rates in 2024
You don’t have to look too hard to find someone who has an opinion on when the Bank of England’s (BoE) base rate of interest will go down from its current 5.25 per cent level.
Our feeling, however, is that the BoE will have cut the base rate to somewhere between 4 – 4.5 per cent by the end of 2024, with further decreases taking place into the first half of 2025. Of course, mortgage rates are likely to fall in line with these changes, too.
It may feel like there’s still a long slog ahead, but don’t forget how long it took to get here. The base rate had been so low for so long that something had to give.
Now that we’ve put forward where we think rates are headed, the next logical question is ‘shall I wait until 2024 to remortgage?’.
Looking ahead
Of course, everyone wants to get the best UK mortgage deal. However, whether or not you take the decision to wait for cheaper UK mortgage deals depends on a few factors.
If your current mortgage deal is about to come to its end – and you’re facing the dreaded standard variable rate – then it’s highly likely that you’ll want to avoid that. In which case, you’ll want to explore what the best mortgage deals right now are.
Those of you on tracker mortgages, and who may have been considering moving to fixed, will possibly have taken BoE’s most recent decision to keep the base rate where it is as reassuring; maybe even reassuring enough to park any ideas of moving to a fixed mortgage!
If you have time – say, for example, your mortgage term doesn’t end until spring 2024 – then you may want to sit it out until then to see if rates go even lower. However, you don’t need to be a mortgage broker to know that things change – continually.
Our advice, therefore, is to hedge your bets by applying for a mortgage on the basis that any offer you receive is valid for six months. So, if you receive a mortgage offer today but it drops by 1 per cent by the time you need it, then you can reapply for a better rate. Equally, if rates increase by 1 per cent by the time you need it, then at least you have access to a better rate via your original offer.
Either way, if you’re thinking of getting a mortgage in 2024, we recommend that you speak with a mortgage broker, who will help you make the best decision for you and your finances.
Thinking about applying for a mortgage in 2024? If so, contact our team of Berkshire mortgage brokerson 01628 560820 or by emailing enquiries@altonmortgages.co.uk.