Mortgage rates tipped to fall below 4%

Experts have claimed that mortgage rates could fall to less than 4% by the start of next year, amid rising hopes that interest rates have peaked. Aaron Strutt, of the broker Trinity Financial Services, said: "Although it is not possible to get below 4% for new mortgages quite yet, we may well see them early next year." Nick Mendes, a broker at John Charcol, added: "We should see more lenders release five-year rates below 4.5% with best buys edging closer to 4%. Two- and three-year fixed-rate deals will also come down to 4.5%." It comes after Nationwide cut its fixed-rate products by up 0.40 percentage points with rates starting from 4.19%. Meanwhile, Santander and Halifax reduced their rates by up to 0.32 and 0.25 percentage points respectively. The cuts followed First Direct's recent decision to shave up to 0.45 percentage points off its fixed rates. 

I (09/12/2023)   The Daily Telegraph (09/12/2023)