Latest news and update from The Globe’s mortgages advisor Charles Calvert
THE last couple of weeks, things have started to settle down.
We now have more direction in the government’s cabinet. Swap rates are less volatile and staying level and, good news for mortgage customers, fixed interest rates are falling.
Five-year fixed rates are now mostly in the low 5% range, with two-year fixed rates somewhat higher than this. I do expect these to fall a little further in the coming days and weeks ahead due the gap that still remains between fixed rates and the current swap rates and Bank of England base rate (now at 3%).
I attended a conference this week put on by Mortgage Solutions in Southampton. Senior people from Savills and Banks such as Halifax were there, talking about the way they expected the market
to change and evolve in the coming months and even years ahead.
They all pointed towards a likely 10% dip in property prices in 2023-2024 and for most interest rates to be in the 4% range.
None of the Banks expected to have any fixed interest rates in the 3% range in the near future and possible for quite some time.
Although property prices will fall 10%, the market suggests they will be back to their current value by 2026.
Interest rates may be settling down after the mini-budget fiasco but we may not see the days of sub 3% interest rates for a long time to come. We all need to be ready for an increase when your current fixed rate ends.
If you would like a mortgage review or have any questions, I’m here to help.