As a Guildford mortgage broker, we’ve lost track of the number of people we’ve spoken with who are desperate to move, but who are convinced that they need to wait until the Bank of England (BoE) drops the base rate even further.
However, with experts forecasting that the BoE will reduce the base rate to 3.75% when the Monetary Policy Committee next convenes on 18th December, the question isn’t just what are you waiting for, but rather could waiting for a drop in rates cost you more in the long run – or lead to you missing out altogether?
Mortgage rates flatlining for 2025?
With recent reports showing that inflation is still above target, our team of mortgage brokers in Guildford predict that the base rate will drop to 3.75% in December, however there is unlikely to be any major reductions in mortgage rates for 2025 due to interest rate swaps dropping over the past few weeks.
In essence, the predicted base rate reduction has already been priced into today’s mortgage rates.
So, if you’re currently on the fence in the hope of better rates imminently, there’s a high chance that you’re going to be disappointed.
The Boxing Day bonanza & New Year rush
As we’ve previously covered, there’s generally a spike in interest for property as we enter a New Year, as people tend to use it as an excuse to get the things they put off in the preceding year – like moving – ticked off.
So, if you’re not ready to go with a mortgage offer in hand (or, at the very least, a Decision in Principle) then you’re going to be at the back of the queue when it comes to making a credible offer should you find the property of your dreams.
Not only that, but there’s a peculiarity that takes place on Boxing Day, when property searches spike by a staggering amount (as much as 84% compared with Christmas Day), which happens in tandem with sellers getting their property ready to launch after Christmas Day following advice from estate agents.
If you’re not in a position to move forward with a mortgage offer, then you may well lose out on all those new properties that hit the market as the festive period ends.
Waiting in vain
Everyone wants to benefit from the best UK mortgage rates. As a team of Guildford mortgage advisers, nobody understands that better than us. And sometimes, waiting for the dust to settle is a sound strategy that pays dividends.
However, when it comes to applying for a mortgage, we don’t think it applies – and let’s not forget that from a mortgage perspective, the dust has been up in the air for several years now. Remember, even if you do apply for a mortgage today, and then rates drop just before Christmas, then we can always reapply for the lower rate.
Similarly, if you’re offered a mortgage today and then rates jump up towards the end of the year or the beginning of next, then the lower rate in the original offer will still stand.
Our advice is don’t fall into a situation where you’re waiting in vain – or worse, your waiting leads to you missing out. Take proactive action now by calling our team of Surrey mortgage advisers to get an offer in hand. Then you’ll be covered either way.
Thinking about applying for a mortgage? Then don’t hang around. Contact our team of Surrey mortgage advisers on 01483 238280 or by e-mailing info@complete-mortgages.co.uk.
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