The Bank of Englandʼs rate-cut today doesnt bring good news for home-owners. Market experts say mortgage costs will stay up due to recent government spending plans which affect swap-rates (the key factor in loan pricing)
Inflation numbers look better than before: September saw prices rise just 1.7% — first time under the Banks 2% goal since late-21. Lower air-fare costs and cheaper fuel helped bring this down‚ but it hasnt affected home-loans yet
Current fixed-rate deals show interesting patterns: two-year fixes average 5.42%‚ while five-year options sit at 5.13%. Santander leads the market with some eye-catching deals:
- 3.99% for two-year fixes
- 3.85% for five-year options
- Both need 40% deposits
- £999 fee applies to these deals
Mortgage expert Chris Skyes explains: “I only suggest trackers to clients who think rates will drop faster than expected; or those needing no early-exit fees.“ Meanwhile Justin Moy from EHF Mortgages points out that nervous borrowers should stick with fixed-deals
Looking ahead to 2025‚ experts predict two-to-three rate cuts — less than earlier forecasts. Nicholas Mendes from John Charcol suggests: “Most people will benefit from 2-year fixes unless they plan big overpayments“
For those with deals ending soon its worth checking lock-in options. Different banks offer various timeframes: Nationwide gives 180 days while Halifax and Santander provide just 120. If youre struggling with payments remember that lenders must offer help through payment breaks or term changes