Mortgage Rates Fall

Mortgage rates have been falling steadily over the last decade, but spiked in the last 12 months as a result of central banks increasing borrowing costs to curb demand. 

Average mortgage rates peaked at over 6% in 2022, but started 2023 at less than 4%. 

Smaller loans get the best prices and some are starting to emerge below 4%.

The pricing of mortgages is complex and depends on inflation and interest rates both in the UK and around the world.

Competition between banks for mortgage business is expected to be strong in 2023, leading to better deals for borrowers. 

Average UK mortgage rates are likely to settle between 4-5% this year.

Demand for homes is tracking inline with 2018/19 pre-pandemic levels, however some potential movers are waiting to see if forecasts for significant house price falls will pan out.

House prices may take a dip due to lower buying power caused by higher borrowing costs; however affordable homes should still attract strong interest in high demand areas.

If you are moving and are looking for a speedy and professional service call now for a no obligation quote on 01603877967 or visit our website mjpconveyancing.com