‘Uneventful’ interest rate update could boost pro...

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01 February 2024

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By Marc Shoffman

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‘Uneventful’ interest rate update could boost property market – claim

Rightmove has recorded its busiest month since launching its mortgage in principle service in 2022 and predicts an interest rate hold could bring further good news for the property market.

Data from the portal shows mortgage rates continue to drop amid expectations that the Bank of England will keep interest rates at 5.25% today.

The average 5-year fixed mortgage rate is now 4.66%, down from 4.81% a year ago, while the average 2-year fixed mortgage rate is now 4.99%, down from 5.12% a year ago.

Lenders have also been releasing more competitive deals for first-time buyers in recent days

For example, TSB has today launched a five-year fixed rate first-time buyer and home mover mortgage at up to 95% loan-to-value starting at 4.99%.

Rightmove’s mortgage expert Matt Smith said: “Average mortgage rates continue to trickle down on the whole, however we’re now seeing those with smaller deposits benefit the most, whereas those who need to borrow less have seen some small increases in rates due swap rate trends.

“If the base rate announcement is as uneventful as the markets are predicting, we should see a stable few weeks for the mortgage market ahead of the Spring Budget.”