Around 1.6 million existing borrowers will be looking to re-mortgage as their current fixed-rate deals expire, with some moving off a rate of less than 2%, leaving them facing much higher repayments on their next home loan.
However, Ms Tucker says Nationwide’s new rate is “a hugely positive sign for the mortgage market” during a “turbulent time”, as people struggle with high costs of living and high borrowing rates.
“This is a fantastic sign of stability and lower interest rates ahead”, she says, adding that the recent general election “has helped consumers and the market to feel more stable”.
The average five-year fixed homeowner mortgage rate is 5.40%, down from 5.47% on Monday, according to date from Moneyfacts.
The average two-year fixed homeowner mortgage rate is currently 5.81%, down from 5.88% on Monday.
“Mortgage rates could fall further, but it is difficult to tell how quickly and by what margins”, said Rachel Springall, a finance expert at Moneyfactscompare.co.uk.
She added: “Those waiting for the Bank of England to cut base rate may be crossing their fingers for August, but this has split opinions among economists who are now pointing towards September at the earliest due to stubborn service inflation.”
Credit: Source link
