It was all looking so good at the start of the year.
The positive outcome of the much-touted mortgage wars that opened 2024 wasn’t just the fact that cheap UK mortgage deals seemed to be getting cheaper on a daily basis, but also the fact that consumer confidence began to increase.
The UK’s housing market was moving again, the best mortgage deals that we’d seen after the inflation-led rate spike began to surface and it felt like all was well (in the world of property and mortgages, we hasten to add).
And then something happened – namely mortgage rates began to increase. As we recently covered in our series of regular mortgage advice articles, there are many reasons as to why this has happened.
But the question of ‘what happens next?’ is in the air. As a Maidenhead mortgage broker, we’re well placed to answer.
Be patient … we’re almost there
With inflation set to soon return to below the government’s target figure of 2 per cent, we feel that the recent significant jump in mortgage rates will be the last. On that basis, we feel that mortgage rates are probably at their highest right now.
Not only will this bring an end to the recent – and long – chapter on the UK’s high inflation, but it will also lay the foundation for cuts to the base rate. And, if the base rate falls, so does the monthly payments for those on variable mortgages.
Whilst nobody knows if or when the base rate is going to fall, there is talk of it happening at least once – possibly even twice – before the close of the year.
What about fixed rate mortgages in 2024?
Whilst we don’t feel that UK fixed rate mortgage deals are necessarily going to go up much further, we don’t believe they’ll fall a great deal, either.
Even the Office of Budget Responsibility seems to think so, too, after predicting that the average mortgage rate will hit a peak of 4.2 per cent – in 2027!
And, with approximately 1.6 million people due to say goodbye to the low fixed rate mortgage rates of years gone by throughout 2024, time is likely to be of the essence.
For those who have the time to wait and the inclination to bet on a falling base rate, then a tracker – if only as an interim measure – could be an option. Or, for those looking to lock in stability via a fixed rate mortgage, then we feel now’s as good a time as any.
Either way, the best way forward is to arrange an initial mortgage consultation with one of our Berkshire mortgage advisers, who will be happy to walk you through your options based on your own personal circumstances.
Looking for the best UK mortgage deals? Or need help with applying for a mortgage? If so, contact our team of Maidenhead mortgage advisers on 01628 560820 or by emailing enquiries@altonmortgages.co.uk.