Borrowers breathe easy as rates drop

Recent data from the Financial Conduct Authority indicates a rise in borrower confidence in the mortgage market. In the latest three-month period, only 280,000 borrowers locked into new mortgage deals, down from 377,000 previously. Pete Mugleston, managing director at Online Mortgage Advisor, noted: "The sharp drop in early mortgage deal lock-ins suggests a shift in borrower confidence, likely influenced by rate expectations." Despite this optimism, many households are still struggling with costs, leading to an increase in interest-only mortgages. The Bank of England reported that the outstanding value of residential mortgage loans reached a record high of £1.67bn, with new mortgage commitments surging by over 50% compared to last year. 

Sky News (15/03/2025)