Nobody likes a war – and sadly there’s enough of those going on right now.

A mortgage rate war, however, is a little bit different. Mainly as it helps existing and prospective homeowners get the best mortgage rates available as lenders race towards launching competitive products with the lowest mortgage rates.

And a mortgage rate war is exactly what’s being touted, as experts predict that the UK will start to see sub-4% fixed rate mortgages in the coming weeks and months.

Even keel

The Bank of England’s recent decision to hold the base rate of interest at 5.25% (for the third time in a row, it’s important to add) points towards the fact that the UK is getting back on an even keel.

At 3.90%, inflation is MUCH lower than the 11.10% we saw back in 2022. Confidence is on the up and all signs point towards more movement in the property market in 2024. Add to this the fact that swap rates are falling and you have a recipe for more competitively priced mortgages.

And about time, too. The growing cost of living has been compounded by a large swathe of the UK population coming off rates of between 1.00% – 2.00%, from deals secured a couple of years ago, to find themselves on mortgages with rates of around 6.00%.

The changing tide will be welcomed by everyone.

New Year mortgage 

As a Guildford mortgage broker that’s been getting mortgages for clients since we first opened our doors in 2005, this is our 19th Christmas and New Year.

And, having now seen so many, we can honestly say that the New Year mortgage rush is a thing. After what was a month-long build-up to Christmas, where very little property buying gets done, people are raring to go by the start of the New Year.

So, with mortgage rates dropping, and what will be a surge of interest from people looking to get a mortgage in 2024, our advice would be to book some time in with a mortgage broker as soon as you can. And hopefully that will be with us.

Here’s to a mortgage rate war (and a Happy New Year). And let’s hope that those real wars come to a close soon.

Steal a mortgage march on 2024. Contact our team of Guildford mortgage advisers today to book a 2024 appointment on 01483 238280 or by e-mailing info@complete-mortgages.co.uk.