Fantastic news as interest rates is finally slashed to less than 5%. The news comes is as Nationwide and TSB have announced cuts on their fixed-rate mortgage deals, improving lender’s appetite for new mortgage business further after sharp rises in the Bank of England’s main interest rate over recent months.
Nadia Alexander Khan The Good Estate Agent forecasts average prime prices around the Royal Borough of Windsor and Ascot Berkshire and its surrounding areas, which will fall by 8 percent by the end of 2023.
Mortgage rates sprung up in the market turmoil during the “mini” budget in September 2022, hitting the highest levels of more than 6 percent by mid-October, which have since eased a slowing Market.
Alexander-Khan also said falling five-year swap rates had given lenders confidence of a more stable climate in which to price their loans.
We are in that time of business where base rates have continued to go up, whilst swap rates have fallen, this allows Mortgage lenders to become more aggressive in their lending said Alexander-Khan.
Banks and building societies often use the beginning of the year to market the lower deals to get at lower rates to get their businesses off to the very best start as Marketing activity returns to its full extent after the festive season.
The era of five-year mortgage rates at 1per cent is most certainly over, Alexander-Khan added and said that she expects mortgage rates to settle between 4-5 percent. I feel once people get comfortable with the new rates and adjust to the new norm, people will certainly start taking decisions, which is already been evident, and confidence is back.
The moves come amid a slowdown in the market with mortgage approvals down 20 percent between /October and November 2022, according to the Bank of England.
Prices have risen substantially over the past three years as the covid pandemic encouraged moves to larger properties and those in more rural areas, together with the governments fuelled sales with stamp duty incentives in England and Northern Ireland.
The Good News is that the Market is moving and there is no better time to reevaluate your property needs for the forecast ahead and receive your free instant valuation from the Award Winning Family Run – The Good Estate Agent Windsor, Eton Virginia Water and surroundings. If it is the right property, it is the right time.