Experts expect mortgage rates to fall

Brokers believe that lenders are likely to drop mortgage rates further after the Bank of England opted not to increase interest rates. Nick Mendes, mortgage technical manager at John Charcol, said: “I would not be surprised to see rates of 4.5% for five-year fixes in October,” while David Hollingworth of L&C added: “We’ve already seen improvements in fixed rates and that looks set to continue or even accelerate in light of improved inflation figures and a hold in interest rates.” Aaron Strutt from Trinity Financial expects more lenders to lower their fixed mortgage deals in the coming weeks, commenting: "Mortgage rates need to be closer to 4% to bring more confidence back to the market.” The UK's biggest building society, Nationwide, has reduced rates by up to 0.31 percentage points, with TSB and NatWest also nudging down the cost of their new fixed rate mortgages. 

BBC News (23/09/2023)   The I (23/09/2023)