Current Mortgage Rates
The start of the year has brought some good news for borrowers, with the majority of lenders cutting their rates since the beginning of January. For those looking for 5-year rates, several lenders now have rates below 4% (based on 60% LTV).
Base rate: what the experts predict in 2024
Based on The Times’s annual economists survey, the majority who took part forecast that the Bank of England would lower the base rate at least twice in 2024, with 45% predicting three reductions. The Base Rate is due to be reviewed 8 times in 2024 – dates available here. This is great news for mortgage rates which tend to respond positively to a reduction in the base rate. The last base rate review took place on 1st February 2024 where the Monetary Policy Committee voted 6-3 to leave the base rate unchanged at 5.25%.
Fixed-rate mortgage renewing in 2024?
If your mortgage is on a fixed rate that ends in 2024, you can start looking for a new rate up to six months before your current rate expires. It is a good idea to speak to a mortgage broker early in the process, to ensure a smooth transition to the new rate when your current rate ends. Many people worry that they will have to change to the new rate immediately, but this is not the case, so if your current fixed rate is a good one, you can keep this right up until its expiry date.
You can also use our online mortgage payment calculator to get an idea of how much your monthly payments could increase to help you with budgeting and forward planning for the year.
Tracker rate mortgage renewing in 2024?
If your mortgage is on a tracker rate this will reduce if the Bank of England vote to lower the base rate, so you could be looking at reductions in 2024 based on the forecasts mentioned above. Most tracker rates also carry low or no early repayment charges, so you have the option to switch to a fixed rate if you wish. The many people who have been waiting on a tracker for fixed rates to reduce, may now be wondering if now is the best time to fix, with some fixed rate deals undercutting current tracker rates. There is no one-size-fits-all answer to this, as it largely depends on personal circumstances and attitude to risk. With rates projected to fall in the next year, a tracker may be attractive, however, if the Bank of England base rate remains at its current level, but fixed rates continue to drop, then customers on trackers may find themselves paying a higher rate than they could have been had they fixed. If a borrower is nervous about potential fluctuations, or about whether their budget would stretch to an increased payment, then a fixed rate may be the most sensible choice.
On a Standard Variable Mortgage in 2024?
If your mortgage is on your lender’s standard variable rate, then it is very likely that there will be an opportunity to reduce your monthly payments by looking at a fixed or tracker rate. In all circumstances, it is a good idea to discuss your options with a mortgage broker who can look at the whole market and make a recommendation personalised to your circumstances and requirements.
Mortgage renewing in 2024?
Contact our team of experienced and friendly mortgage brokers who can explore the whole of the mortgage market to find the best solution for you. Call 0330 441 2244 or email [email protected]
Written by Hatty Lawrence
Certs CII (MP&ER)
Mortgage, Protection and Equity Release Adviser
Hatty has advised clients on mortgages, protection and equity release since joining the industry in 2015. Hatty particularly enjoys working with clients to build positive relationships based on trust and excellent customer service, as she believes these are essential to helping clients to achieve their home ownership goals and to protect themselves, their family and their business.