According to data from Moneyfacts, this marks a “symbolic turning point” for the market, as lenders compete more aggressively for business. It’s also a psychological win for homebuyers, signalling a gradual shift in affordability after two challenging years of higher rates.
A cautious optimism
Since last August, interest rates have been trimmed five times, but the Bank of England’s most recent meeting revealed a split vote among policymakers, raising uncertainty over whether further cuts will come this year. Mortgage rates are following the Bank’s “mood music” but experts warn they’re unlikely to tumble significantly in the near term.
For buyers, the timing matters
Lower rates are improving affordability calculations for those ready to move, and competition among lenders could offer more attractive deals in the months ahead. That said, acting promptly when you find the right property and mortgage product remains key, as market sentiment can shift quickly.
Matt Spacey, Operations Director for Jeffries and Dibbens, said:
''We are seeing increases in buyer registrations. Whilst we enjoy market leading status, attracting buyers to our large available property portfolio, we have also seen this immediately rise with the latest interest rate drop.
We are seeing rates under 5% now and this encourages people to move.
We have a great network of qualified Financial Advisors. Through our partnerships, we offer a no obligation mortgage consultation. This is popular with buyers and sellers, particularly with our professional approach and this is not a condition of buying or selling through us, unlike some of the tactics exposed recently.''
If you would like free financial advice then call, email or ChatLive for an appointment.
