Mortgage Market Mooves - August 2024 Update

Navigating the UK Mortgage Market: Key Insights for 2024

As we progress through 2024, the UK mortgage market continues to experience significant changes, driven by recent economic decisions and evolving market dynamics. Whether you're a homeowner looking to re-mortgage or a first-time buyer, understanding these shifts is crucial for making informed decisions. Here's what you need to know about the current mortgage landscape and what to expect in the coming months.

Current Trends in Mortgage Rates

In August 2024, the Bank of England cut its base rate from 5.25% to 5%, marking the first reduction since March 2020. This has prompted major lenders to adjust their mortgage offerings, creating new opportunities for borrowers. For instance, NatWest has announced a reduction in fixed rates across a range of mortgages, bringing some residential loans down to as low as 3.89%. Similarly, Santander has also reduced rates by up to 27 basis points, further intensifying the competition among lenders.

These adjustments mean that more competitive fixed-rate mortgage options are now available, with some deals dipping below 4% for the first time in months. To navigate these changes and find the best mortgage deal tailored to your needs, I encourage you to reach out for personalized advice. As a dedicated mortgage broker, I’m here to help you secure the most favourable terms possible.

What This Means for Homeowners and Buyers

With these recent rate cuts, now is an excellent time for homeowners nearing the end of their current mortgage deals to consider re-mortgaging. The potential savings from locking in a lower fixed rate could be substantial, especially given that Standard Variable Rates (SVRs) remain high, with some nearing 10%.

For first-time buyers, the market conditions are increasingly favourable. In addition to the reduced rates from lenders like NatWest and Santander, innovative lenders such as April Mortgages are improving their capital raising criteria. This move is expected to provide significant support to prospective buyers, making it easier to secure financing.

Future Predictions: What to Expect

While the recent base rate cut is a positive sign, the mortgage market remains volatile. Further rate reductions could occur, but the timing and magnitude are uncertain. Acting quickly when you find a favourable deal is crucial, as the best rates may not be available for long. Rates dropped unexpectedly in January this year only to rise again in February. Those borrowers that delayed missed out on competitive rates.

To ensure you don’t miss out on the best opportunities, stay connected with an experienced mortgage broker who can provide timely advice and updates.

Conclusion

The UK mortgage market in 2024 is in a state of flux, with recent rate cuts offering opportunities for savvy borrowers. Whether you’re looking to re-mortgage or secure a new mortgage, staying informed and acting quickly is key. By understanding the current trends and predictions, you can navigate this evolving landscape with confidence.

John Hollis is an Independent Mortgage Advisor with 20 year experience in the UK Property and Mortgage Market. Whether you're buying your first home or looking to re-mortgage, John and the team can provide expert guidance tailored to your financial situation. For more personalised mortgage advice and to explore the best options available to you, visit his website and arrange a call.