Fixed-rate mortgage rates expected to dip below 4%

Experts have predicted that fixed-rate mortgage rates could to fall below 4% within weeks, following lower-than-expected inflation figures and an upbeat outlook from the Bank of England. David Hollingworth, of brokerage London and Country Mortgages, said: "We won't see sub 4% next week, but it's a case of weeks and months, assuming no more negative data comes up. The Bank of England is more open to the prospect of the Bank Rate coming down, which is driving optimism.” He added: "A lot of the anticipated Bank Rate cuts are already priced in [to mortgage deals], so it depends if we see improvement quicker than expected. Rates won't be slashed; there might be quite a few small rate cuts. If falls in the swap rate continue, we could easily see lenders cutting back, and five-year fixed rates heading back towards 4%." Riz Malik, of mortgage brokerage R3, said: "Better-than-expected inflation suggests cuts will come earlier. This will raise hope of this mythical Bank Rate cut that we're all desperate for." 

The Sunday Telegraph (24/03/2024)