Our weekly guide on Mortgage Best Buys Mortgage Rates. We also include commentary on the current market economy whilst keeping you updated with our Guides section on our website talking about Mortgages, Protection, Money, Property and Financial Planning.
Market Commentary
Mortgages
It’s December, normally a month of contraction on lending figures in mortgage-market and a period when many borrowers are hoping to complete on their new home in readiness for the festive-period. Lots of our clients completing this month and many have benefitted (where applicable) from switching to lower rates over the past few weeks, following the market reducing rates. This is great news for consumers and we are heading in 2024 with confidence in the market, rates are falling to a more affordable level. Some five year fixed rates at lower loan to values are approaching ~4.5% and first-time-buyer low-deposit mortgages now under ~6%, two important ends of the market moving in the right direction.
Interestingly; SONIA swap rates continue at a fairly consistent level, therefore majority of the rate recent movements I’d attribute to lenders reducing margin to remain competitive and reaching end of year targets. Could we could be at risk of a ‘bounce’ factor on rates in early 2024? Watch this space.
House Prices
I’m eagerly awaiting the House Price reference index early next year, this will show completion data for sold property prices in H2 ‘agreed sales’ in 2023. This will give us an indication based on completion data following housing contraction throughout the summer i.e. lots of houses on the market but agreed sales reducing. Could this be the lowest reporting period in Q1 2024 in recent years? Inflation continuing to fall, house prices falling and as a result could we expect a reduction in BoE? Once we reach this stage I’d predict some government intervention, launching new housing schemes and/or further stamp duty incentives to support driving the housing market forward.
First Time Buyers Fixed Rates
| Lender | Rate | Loan to Value | Rate Type |
| Nationwide | 5.89% | 95% | 2-year fixed |
| Virgin Money | 5.33% | 90% | 2-year fixed |
| Nationwide | 5.30% | 95% | 5-year fixed |
| Virgin Money | 4.85% | 90% | 5-year fixed |
Large Mortgage Loans Purchase Rates over £1m
| Lender | Rate | Loan to Value | Rate Type |
| Barclays | 5.15% | 85% | 2-year fixed |
| Barclays | 4.80% | 75% | 2-year fixed |
| Halifax | 5.83% | 85% | 2-year BoE tracker |
| HSBC | 5.54% | 75% | 2-year BoE tracker |
Remortgage Fixed Rates
| Lender | Rate | Loan to Value | Rate Type |
| TSB | 4.94% | 75% | 2-year fixed |
| TSB | 4.89% | 60% | 2-year fixed |
| Principality | 4.69% | 75% | 5-year fixed |
| Principality | 4.69% | 60% | 5-year fixed |
| Nationwide | 4.94% | 75% | 10-year fixed |
Buy to Let Purchase Rates
| Lender | Rate | Loan to Value | Rate Type |
| Aldermore (Ltd BTL) | 4.79% | 75% | 5-year fixed |
| Natwest | 4.59% | 75% | 5-year fixed |
PRODUCTS CORRECT AS OF 01.12..23
ALL MORTGAGE RATES ARE SUBJECT TO CREDIT STATUS, INCOME AND AFFORDABILITY.
ARRANGEMENT FEES AND EARLY REPAYMENT CHARGES MAY APPLY TO THESE PRODUCTS THESR ARE FOR ILLUSTRATIVE PURPOSES OF RATES. PLEASE CONTACT AN ADVISER FOR A RECOMMENDATION TO MEET YOUR CIRCUMSTANCES.
YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
References – Forbes & HousingPriceIndex
