UK Mortgage News as of February 12, 2024
Interest Rates:
- The Bank of England held the base rate at 5.25% in February, but some lenders are still raising rates independently.
- Average two-year fixed rates are around 5.58%, while five-year deals average 5.22%.
- Some lenders are offering competitive deals, with Metro Bank launching a five-year fixed rate at 5.79% for 95% LTV.
- However, expectations of imminent rate cuts have faded, meaning the mortgage price war may slow down.
Market trends:
- Mortgage lending is forecast to fall by 8% in 2024, following a 23% drop in 2023.
- Higher house prices and interest rates are making it harder for borrowers to pass affordability tests.
- The number of mortgage arrears is expected to rise to 128,800 by the end of 2024.
Recent news:
- Halifax, NatWest, Virgin, and TSB have all increased mortgage rates recently.
- Nationwide offers a five-year fixed rate at 3.94% for 60% LTV.
- TSB has cut selected fixed rates by up to 0.7 percentage points.
Additional resources:
- Moneyfactscompare: https://moneyfactscompare.co.uk/news/mortgages/
- MoneyWeek: https://moneyweek.com/personal-finance/mortgages/latest-UK-mortgage-rates
- Forbes Advisor UK: https://www.forbes.com/uk/advisor/mortgages/2024/02/08/mortgage-updates/
- UK Finance: https://www.ukfinance.org.uk/news-and-insight/press-release/mortgage-lending-fall-in-2024
Remember, this is just a snapshot of the current UK mortgage market. It’s important to speak to a mortgage broker to get personalized advice based on your individual circumstances.
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