Insiders in the mortgage industry believe mortgage rates are set to improve in the next few months as offers should get cheaper and become more available.
The minutes of Aprils meeting of the Bank of England’s Monetary Policy Committee revealed that we are no closer to getting a base rate increase in the next few months, news which saw some lenders cut their fixed-rate mortgage deals.
Brian Murphy, director of the Mortgage Advice Bureau revealed, “What is happening is that the money markets priced a more immediate Bank rate rise into the cost of mortgages. Now it seems that this may not take place until August or even next year. This is starting to feed through to rates,”
Ray Boulger from brokers Charcol added, “Fixed rates could go even lower. The market is still anticipating rates going up more quickly than they actually will. The fact that inflation went down rather than up last month was a bit of a game changer,” before suggesting, “Fixed rates could get as low as 4 per cent.”
Murphy did warn, “We have seen as many people moving their mortgages to new providers as at anytime since before the credit crunch, and you can understand why. Rates, although there may be some downward moves over the summer, are abnormally low and those locking their rate in now are definitely getting the deal near the bottom of the market.”