Mortgage deals are unlikely to fall drastically in the months ahead, despite two-year rates dropping to their lowest level in two years.<\/p>\n
Two-year fixes are at their lowest average rate in two years, having fallen by 0.14% in the past month to 5.18%., Moneyfacts research found.<\/p>\n
Meanwhile, five\u2013year rates currently stand on average at 5.10%, which is down from 5.48% since last May.<\/p>\n
However Luke Williams from Pure Property Finance said: \u201cIts great to see that property interest rates are slowly coming down, but I don\u2019t think there will be any dramatic drops as we get to the end of the year \u2013 it definitely won\u2019t reach the 2% mark that we had pre-Covid.<\/p>\n
\u201cThere\u2019s some optimism that rates might soften a little bit throughout the year, but it won\u2019t be a dramatic drop. With inflation starting to ease ever so slightly, lenders are still pricing conservatively and are still reluctant to make any huge changes.<\/p>\n<\/p>\n
\u201cThe Bank of England base rate is a key driver in interest rates, we\u2019ve started to see this come down consistently, with two members of the MPC most recently voting for a 0.5% cut. Mortgages may follow in the coming months; but won\u2019t reach pre-pandemic levels for a long time.\u201d<\/p>\n
Williams added: \u201cSome borrowers have opted to sit on variable\/tracker rates as mortgage costs trend downwards; with the intention of switching to a fixed rate once the market plateaus.<\/p>\n
\u201cOthers who need more payment security or higher lending would be more suited to a fixed rate. This offers a guaranteed monthly payment for a set term, regardless of what happens with BOE base rate.<\/p>\n
\u201cEach borrower\u2019s scenario is different. It\u2019s still important to still seek advice on what deal suits your scenario best.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Mortgage deals are unlikely to fall drastically in the months ahead, despite two-year rates dropping to their lowest level in two years. Two-year fixes are at their lowest average rate in two years, having fallen by 0.14% in the past month to 5.18%., Moneyfacts research found. Meanwhile, five\u2013year rates currently stand on average at 5.10%, […]<\/p>\n","protected":false},"author":1,"featured_media":651,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-650","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-second-home"],"yoast_head":"\n