Mortgage rates could drop below 4% by next summer, saving average home owner £700 a year

Mortgage rates could dip below 4 per cent by next summer in a major boost to millions of families facing a financial squeeze,The growing optimism comes as the Bank of England MPC committee prepares to decide whether to maintain the base rate of interest, currently at 5.25 per cent, on Thursday this week, or increase it.

However Andrew Montlake, spokesperson for Coreco brokers pointed out that “quite a lot has to happen to get to 4 per cent – inflation needs to fall in order for swap rates, which are the rates that determine mortgage pricing, to come down”. The Government argues that bringing down inflation by keeping fiscal discipline is the best way to avoid further rises in interest rates.

Elliott Culley, director at Switch Mortgage Finance, said that lenders “could be on a trajectory” to sub-4 per cent rates, but added: “At the moment this is cautious optimism.”

Loans Loans Latest News, Loans Loans Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Spider-Man 2 has a £1 million mortgage – expert says he should sellIt's not cheap living in New York City, but surely Spider-Man won't sell his family home?
Source: MetroUK - 🏆 13. / 82 Read more »

How I Manage My Money: Operations manager with a 100% mortgage, spending £9,000 on a holidayDan French spent thousands on a once in a lifetime holiday but is now working to build up his savings
Source: i newspaper - 🏆 8. / 89 Read more »

Baffled first-time buyers struggle to understand mortgage jargon, study findsTerms such as LPA and conveyancing sound like another language for first-time buyers - making mortgages even more difficult to understand.
Source: nottslive - 🏆 96. / 52 Read more »

Baffled first-time buyers struggle to understand mortgage jargon, study findsTerms such as LPA and conveyancing sound like another language for first-time buyers - making mortgages even more difficult to understand.
Source: BelfastLive - 🏆 16. / 77 Read more »