MSE News: Mortgage rates are falling – five-year fixes to drop under 4%. But will they get cheaper?

Interest rates on mainstream five-year fixed mortgage deals are set to drop below 4% this week – the first time in more than six months they've been this low from a high-street lender. Meanwhile, two-year fixes are set to fall below 4.5%. But should you fix now or wait in the hope that rates will fall further? 

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Mortgage rates are falling – five-year fixes to drop under 4%. But will they get cheaper?'

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  • robot1000
    robot1000 Posts: 270
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    First direct will be releasing their new rates on Friday.

    Couldn't have come at a better time for me, as my 5 year fix ends next week.
  • snowqueen555
    snowqueen555 Posts: 1,519
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    edited 3 January at 8:17PM
    Currently applying with Halifax and getting the 4.88% 2 year fix and nothing has changed since last month. I hope it drops further, but these cuts so far only applies to people remortgaging. 

    Fingers crossed Halifax reduce their rates before I complete purchase.
  • fergie_
    fergie_ Posts: 155
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    How low do people think rates will go? And when?
  • robot1000
    robot1000 Posts: 270
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    robot1000 said:
    First direct will be releasing their new rates on Friday.

    Couldn't have come at a better time for me, as my 5 year fix ends next week.
    Key rate changes include:

    - First Direct's five-year fix dropped from 4.64% to 3.99%.
    - Their ten-year fix decreased by 98 percentage points from 4.97% to 3.99%.
    - Two- and three-year fixes are below 5% for loans up to 85% LTV (15% deposit), starting at 4.54% for new customers and 4.49% for existing ones.
    - Mortgages with 90% LTV start at 4.69%, and 95% LTV mortgages at 5.44%.
    - A 0.19% rate reduction for existing customers with an offset mortgage over two years.

    First Direct's deals have no booking fee or a fee capped at £490.
  • snowqueen555
    snowqueen555 Posts: 1,519
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    I was hoping for more drops. I'm only really seeing First Direct, anyone else? I'm currently applying through Halifax so I'm hoping they drop theirs again.
  • robot1000
    robot1000 Posts: 270
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    I was hoping for more drops. I'm only really seeing First Direct, anyone else? I'm currently applying through Halifax so I'm hoping they drop theirs again.
    I find this quite helpful as they update it daily: https://www.forbes.com/uk/advisor/mortgages/2024/01/05/mortgage-updates/
  • naf123
    naf123 Posts: 1,694
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    The 3.89% by Coop is really promising. My renewal is at end of April so I think hopefully it will be around that or lower by then. It makes things so much affordable (even thou its still expensive!)
  • KerrBearrxo
    KerrBearrxo Posts: 49
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    edited 9 January at 11:15AM
    Can someone advise me because I'm so confused. I too have seen these "interest rate drops" all over the news and have been following it for some time as my FT comes to an end in April. Santander released a press release in December stating that 60% LTV five-year FT with a £999 product fee is now 4.39% and 75% LTV 5 year with a £999 product fee is 4.51% - I am currently just above 60% LTV but will be 60% when my mortgage ends - so I have constantly checked my remortgage offers and none of them match these prices. All the five year fixed term deals are 5% or more. The cheapest I can find is 2 years £999 product fee for 4.82% so how do we actually get these "better deals"? The press release states its on residential mortgages and remortgages - which mine is... so what am I missing?
  • kingstreet
    kingstreet Posts: 38,616
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    Can someone advise me because I'm so confused. I too have seen these "interest rate drops" all over the news and have been following it for some time as my FT comes to an end in April. Santander released a press release in December stating that 60% LTV five-year FT with a £999 product fee is now 4.39% and 75% LTV 5 year with a £999 product fee is 4.51% - I am currently just above 60% LTV but will be 60% when my mortgage ends - so I have constantly checked my remortgage offers and none of them match these prices. All the five year fixed term deals are 5% or more. The cheapest I can find is 2 years £999 product fee for 4.82% so how do we actually get these "better deals"? The press release states its on residential mortgages and remortgages - which mine is... so what am I missing?
    Have another look tomorrow. Santander is cutting overnight. Re the LTV, if the market indices are marking down prices/values don't rely on being 60% or less at a future date as lender systems can't forward date either.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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