Rate-cutting a ray of hope for housing market

IT’S been a spellbinding week in the world of mortgages and UK politics.

Liz is out and Rishi is in!

Will this make a difference to people’s mortgage payments? That is yet to be seen.

There are signs interest rates may be starting to dip slightly after reaching a 14-year high on October 20.

The average two-year fixed rate stood at a high of 6.65%, up from 2.25% a year earlier. Five-year fixed rates peaked at 6.51%, up from 2.55% in 2021.

Numerous lenders have been cutting rates this week as stability gradually returns to the economy following the turbulent 44-day premiership of Liz Truss.

As always, banks are quick to increase interest rates and slow to bring them back down again. The average seems to now be 0.15% lower than a week ago.

Hopes are that Rishi Sunak and Jeremy Hunt can bring further stability to the market and rates may fall further in the coming days and weeks ahead.

I will continue to monitor the market and provide you with updates, but as always if I can be any help to you, please get in touch.