Tidings of Comfort and Joy for House-Buyers and Homeowners
As two- and five-year mortgage fixed-rate rates dip below 6%
If you’re looking for homes for sale in Hertford or property for sale Hertfordshire or indeed anywhere else in the UK, the last year hasn’t exactly been full of tidings of comfort and joy – what with the cost-of-living crisis followed by soaring interest rates after that ‘mini budget’ with maximum consequences… But finally, with Christmas so close, we can see a bit of light at the end of the 2022 tunnel.
After the so-called ‘Kami-Kwasi mini-budget’ late in September the pound crashed and interest rates rocketed, with mortgage rates peaking at a rather scary 6.65% compared with 2.34% for the average If you’re looking for homes for sale in Hertford or property for sale Hertfordshire or indeed anywhere else in the UK, the last year hasn’t exactly been full of tidings of comfort and joy two-year deal this time last year. Obviously, this was bad news for everyone with a mortgage or hoping to get one – and doubly so for those whose fixed-rate deals were coming to an end, who faced unaffordable hikes in their monthly payments. It was just as bad for first-time buyers, whose hopes were dashed as banks withdrew nearly half of all first-time buyer mortgages.
So far, so depressing, we know. But here’s the good news. There are reports of average two-and five-year fixed rates coming DOWN a little for the first time since September. Yes, we said DOWN! OK, that’s not by very much for now – but by well over half a percentage point to 5.99% for a typical two-year deal. Better still, the average five-year fixed rate is down to 5.78% – a drop of not far off a whole percentage point. That may not sound like much – but let’s not forget that for several years the Bank of England’s interest rate adjustments have been measured in tiny increments of about a quarter of a percent.
As markets stabilise after the Autumn Statement, the number of fixed rate deals on the market is recovering and currently stands at 3,705, although that’s still far fewer than were available this time last year.
So what, you’re probably asking, are the prospects for the close of the year? Well, believe or not, that’s not the only piece of good news. According to the BBC website, we may well see further falls in rates as lenders strive to meet year-end targets.
Whatever happens, though, the market is still volatile, and it’s more important than ever to get independent advice before committing to a mortgage deal – especially since it is to be hoped that they’ll reduce further in the New Year!
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