Mortgage rates set to fall below 4%

Mortgage rates are expected to fall below 4% early next year, with experts predicting that five-year fixed rates will fall in early 2025 while two-year rates are likely to follow later in the year. Elliott Culley, director of Switch Mortgage Finance, said: “Provided inflation doesn’t have any abnormal figures we should see a return to rates under 4% around February-time,” while Nick Mendes of brokers John Charcol said: “Mortgage rates are expected to decline in 2025, but the extent and pace of this reduction will depend on several factors.” Aaron Strutt, a broker at Trinity Financial, said: “From speaking to banks it seems they want a more positive start to 2025, which means offering as low a rate as possible,” adding: “We’ve seen before mortgage rates can come down even if the base rate stays the same.” Data from UK Finance shows that an estimated 1.8m fixed-rate mortgages are set to mature in 2025. 

The I (16/12/2024)