MSE News: Mortgage rates drop below 4% for the first time in months

MSE_Kit

Interest rates on fixed mortgage deals have fallen below 4% for the first time since November 2024 – but will rates come down further? We've spoken to four mortgage brokers to see what they think – and whether you should fix.

Read the full story:

'Mortgage rates drop below 4% for the first time in months – so do brokers think now is a good time to fix?'

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Hoenir

The article fails to mention product fees. Headline interest rates in isolation are misleading. 

Baldeagle095

Why is APRC - the annual cost of a mortgage over its lifetime, not included in your figures?

kingstreet

Baldeagle095 said:

Why is APRC - the annual cost of a mortgage over its lifetime, not included in your figures?

Probably because virtually no-one continues on the "follow-on" rate after their initial product ends.

kingstreet

Santander is pulling its 3.99% 5Y fix with £1,749 fee tomorrow.

Hoenir

kingstreet said:

Santander is pulling its 3.99% 5Y fix with £1,749 fee tomorrow.

That tranche of funds were gobbled up quickly. Many people yet to refix from their low interest rate products for a couple of years yet. 

nyermen

Little basis point shift wobbles are about - this week maybe because Gilts are up (early feb they were down), and I gather swap rates have risen too in the last few days.

Short term rReal changes will depend a lot on impact of NI rises in April on Inflation.  (well unless world politics pulls out another bombshell...)
If inflation is deemed under control, then the market rates will react, the BoE will set rates well, and 2/5yr fixes may well improve. Otherwise, who knows sadly.

I'm hoping the OBR can improve its forecasting though - coming in at 25% over estimate of January tax receipts (5billion or so I think?) seems quite a misforecast.