Mortgage lenders over the last 2 weeks have been reducing their fixed rate mortgage deals. This is welcome news for First time buyers and clients looking to move house or remortgage their property.
The main reason for this is the rate at which Mortgage lenders borrow money at has been falling over the last few weeks.
There are a number of high street lenders offering fixed rate deals just below 4% however you will need a 40% deposit to access these deals. If you are a first-time buyer with a 10% there are some deals at around 4.5%.
The Bank of England meet on Thursday 8th May 2025 to discuss interest rates. A cut in interest rate is expected at this meeting by many economists. This does not mean there will be any further reductions to Fixed rate deals. If you are borrower or looking to get a mortgage I would not be banking on any further cuts.
If there is a cut in interest rates, borrowers who are on a tracker deal will benefit and potentially borrowers on a standard variable mortgage, but this is at the lender’s discretion.
Rates could quite easily move back up with the global economic uncertainty. If you are looking to buy a property this year or your mortgage deal is due to run out within the next 6 months, it is worth speaking to a mortgage broker now and understanding what is available and what your options are.
I think we are likely to see fixed rates moving up and down this year. If you secure a mortgage deal, most offers are valid for 6 months. If your lender reduces their rates before you complete on your mortgage you can apply for that lower rate.
The information contained within was correct at the time of publication but is subject to change
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