As a Maidenhead mortgage broker, we’ve been closely monitoring ongoing fluctuations in mortgage rates, the increasing base rate of interest and the rate of inflation. That shouldn’t be a surprise, of course – it’s our job!
What was a surprise, however, was news published just before most of the nation finished for the Christmas break that inflation in November dropped to 3.9 per cent – down from 4.6 per cent in October.
After what has generally been a year of things going UP, we’re ending the year with news that things are actually coming DOWN. An early Christmas present, perhaps.
So, what does this mean for mortgages?
New Year sale
Everyone loves the January sales.
And whilst mortgages aren’t typically associated with post-festive deals, it appears that we may well see the best mortgage deals we’ve seen for some time enter the market as soon as January – with fixed rate mortgage rates expected to drop as low as 4 per cent at the turn of the New Year.
The housing market has been sluggish in 2023. However, increased competition from lenders is likely to change this as soon as we hit 2024. And, as confidence grows, so too does the positive spiral effect, whereby the better things get, the better things get.
And this good news could soon extend beyond fixed rate mortgages, too.
Those on – or who are interested in – tracker mortgages may soon benefit, too, if the Bank of England decides to begin cutting the base rate of interest (which is now being debated amongst industry experts, who feel that the fall in inflation may prompt a rate cut sooner than originally predicted).
How can I get the best mortgage deal?
At the time of writing, there’s only a few days before Christmas – so there’s very little that you can do right now.
Besides, we only expect to see New Year mortgage deals hit the market as we all recover from the inevitable Christmas excess and return to work.
As previously covered, January is always a busy time for mortgage brokers – and our team of Maidenhead mortgage advisers is already braced for a surge in interest from 3 January onwards. So, if you’re looking to apply for a mortgage in 2024, our advice is to make contact with a mortgage broker as soon as possible in the New Year.
In the meantime, our only other advice is to kick back, enjoy a mince pie or two, and have a very merry Christmas.
See you in 2024.
If you’re thinking of applying for a mortgage in 2024, get in touch with our Maidenhead mortgage brokerage on 01628 560820 or by emailing enquiries@altonmortgages.co.uk.