"Pleased to say my prediction of a sub 4% rate by the end of Jan just about came good with Virgin Money launching a 3.99% fixed for 10 years. Product comes with a £995 booking fee but £1000 cashback which represents very good value currently.
Generation Home, Digital Mortgages and Natwest all announced rate reductions this week also, so hopefully this continues.
Bank of England Base Rate meeting on Thursday saw the rate increase by 0.5% taking it from 3.5% to 4%. No doubt the media will be jumping on this and reporting misleading headlines about mortgage rates also increasing. Whilst this is true for people on variable rates, I think I have evidenced that Fixed rate lending has continued to drop month on month since the mini budget.
I feel 3.5% for Fixed rate lending is not impossible as lenders start to compete as we enter the usual busy Spring Period. There will be the inevitable cooling in terms of reductions though so I set my expectations of a 3.5% Fixed rate by the end of March."
Tom Andrews
Director
Salcey Mortgages