Mortgage rates drop below 4%
First published on KensingtonHouse.com on 1 August 2024. Figures, forecasts and quotations reflect that date and have not been updated. Read it as a record of the market at the time, not as a current view.
At the end of July, Nationwide released a five-year fixed rate mortgage priced at 3.99%, marking the first time the mortgage market has seen a sub-4% deal since February. Other major lenders like HSBC and Halifax have also been gradually reducing the cost of their fixed-rate deals over the past few weeks.
“Nationwide’s sub-4% mortgage marks a significant change in the landscape, signaling better news for borrowers”
Nicholas Mendes, a mortgage technical manager at the broker John Charcol, said: “Nationwide is the first lender to finally breach the 4% benchmark following recent weeks of downward repricing. This is fantastic news for borrowers and signifies a significant change in the mortgage landscape after recent months of increased rates… We will likely see the likes of HSBC look to reprice again to ensure they remain ahead of the pack.”
Our analysis is that the mortgage market as a whole is now pricing in a base rate cut in August and/or September, with lenders looking to promote their most competitive rates and to stimulate the market for new purchases as we move towards the traditionally busy September period.
Original publication: kensingtonhouse.com, 1 August 2024. The organisations quoted are named in the text; their figures are reported as they stood on the publication date.