UK mortgage market update – November 2023
Following mortgage rates peaking over the summer, November brought some welcome news for borrowers as sub-5 per cent rates made a return to the market.
Thanks to inflation continuing to fall and the base rate being kept at 5.25% by the Bank of England, lenders have cut rates again.
It means borrowers are seeing an increase in the number of two-year fixes at less than 5%. According to MoneyFacts, there are now 27 lenders offering sub-5% mortgages on two to ten year fixes, compared to 13 lenders at the start of October.
For the almost 1.4 million homeowners with mortgage deals coming to end in 2024, the news may provide some relief. However, there is still concern that many people will still face increases in their mortgage payments.