Fixed-rate mortgages continue to fall

With inflation dipping for the second month in a row to 10.5 per cent in December, from 10.7 per cent the previous month, this will help take some pressure off the Bank of England. However, another increase in base rate next month from its current level of 3.5 per cent is still expected.

Pricing of Swap rates and subsequently fixed-rate mortgages soared as a result of the fallout from the mini-Budget but have continued to fall since then as much of that turmoil has passed through the system. Lenders have been reducing their fixed-rate mortgages in recent days; while the days of the sub-1 per cent five-year fix may be long gone, it is surely only a matter of time before they edge below 4 per cent. As the cost of funds falls, servicing pressures subside and lenders look to originate new business, there should be more opportunities for borrowers looking for a competitive deal.

With market conditions remaining challenging for the foreseeable future, it is more important than ever that borrowers seek advice before taking out a mortgage. You can reserve a rate up to six months before you need it for peace of mind and can always switch to another product should rates fall further by the time you actually take out the mortgage.

Speak to your SPF mortgage adviser

Your dedicated SPF mortgage adviser is on hand to take care of any mortgage questions you or your clients may have. Please do not hesitate to get in touch with us at 020 3488 6445.