UK mortgage rates set to drop amid US stock market instability

Brokers have stated that following Monday's volatility in the US stock market, mortgage rates in Britain may begin to decline more quickly. Brokers estimate that before the end of the year, borrowers may see mortgage rates as low as 3.5%. Currently, Nationwide and NatWest both offer mortgages with rates under 4%. Worse-than-expected US manufacturing and employment data has triggered a Wall Street meltdown and increased pressure on the Federal Reserve to reduce rates sharply in order to prevent the country from entering a recession. The Bank of England economists reduced the Bank Rate last week, from 5.25% to 5%, marking the first decrease in four years. NatWest has responded to a cut in the base rate by offering a five-year fixed rate mortgage at 3.97%, which is the lowest rate on the market. Other lenders, including Virgin Money, MPowered, Halifax, Leeds Building Society, and Skipton Building Society, have also made reductions.

Daily Mail (06/08/2024)   The Daily Telegraph (06/08/2024)