Typical mortgage rates dropped to 4.99% this month, analysis by Moneyfacts has found.<\/p>\n
This means affordability is gradually improving for mortgage borrowers, though it could be better given the Bank of England has cut the base rate five times since August last year to 4%.<\/p>\n
The Bank\u2019s next base rate decision will be on Thursday and if there was another cut \u2013 something that\u2019s dividing the financial markets \u2013 mortgage rates would likely follow suit.<\/p>\n
Mary-Lou Press, president of NAEA Propertymark, said: \u201cIt\u2019s extremely positive to see a far more competitive lending market than only 12 months back. Consumers have faced a doubled-sided challenge in recent years with elevated inflation and heightened base rates.<\/p>\n
\u201cAlthough we have seen three base rate cuts throughout the year to date, affordability has remained challenging for many. It will be a case of all eyes on the Bank of England on Thursday, as the next base rate decision is made.<\/p>\n
\u201cAlso, with strong rumours of a potential overhaul for those in England and Northern Ireland regarding stamp duty, there will be close watch on the chancellor, as fiscal plans for the forthcoming year are shared within the Autumn Budget in only a few weeks time too.\u201d<\/p>\n
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Average mortgage rates previously dipped to 4.99% in September, before rising to 5.01% in October.<\/p>\n
Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said: \u201cMortgage rates are much lower thanks to base rate cuts and swap rate movements.<\/p>\n
\u201cHowever, sticky inflation makes it less likely for the Bank of England\u2019s Monetary Policy Committee to unanimously agree on making more cuts. In addition, uncertainty remains surrounding what may be revealed within the Budget.<\/p>\n
\u201cThat said, fixed rate mortgages do not always bend to the will of base rate cuts, and instead are more intrinsically linked with swap rates.<\/p>\n
\u201cBorrowers keen to refinance would be wise to seek advice to secure a new deal and not wait around for more rate cuts by the Bank of England.\u201d<\/p>\n
In October last year typical rates rose above 6%, after then-Prime Minister Liz Truss\u2019s \u2018mini-budget\u2019 caused panic in the financial markets.<\/p>\n","protected":false},"excerpt":{"rendered":"
Typical mortgage rates dropped to 4.99% this month, analysis by Moneyfacts has found. This means affordability is gradually improving for mortgage borrowers, though it could be better given the Bank of England has cut the base rate five times since August last year to 4%. The Bank\u2019s next base rate decision will be on Thursday […]<\/p>\n","protected":false},"author":1,"featured_media":5188,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-5187","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-second-home"],"yoast_head":"\n