Home movers have been given a “belated Christmas present” as mortgage rates continue to drop, it has been claimed.
It comes as HSBC today became the first major lender to release a rate below 4% in more than a year, with a five-year fix at 3.94%.
Nicholas Mendes, of mortgage broker John Charcol, said: “This latest move will no doubt move them amongst the Nationwide, Halifax, Virgin and Barclays rates.
“As been noted in the past few days lenders will be looking to capitalise on the pent-up purchase demand and those coming to the end of their fixed rate in the first half of 2024, so we should expect to see continuous battle amongst lender.”
Matt Smith, Rightmove’s mortgage expert said: “It looks like lenders are likely to give early 2024 movers the belated Christmas present of lower mortgage rates. After the reduction in swap rates we saw before the holidays, this is now starting to filter through to mortgage rates now that the festivities are over and the working year has begun.
“Unless things change, the signs are positive that lenders will reduce rates further over the coming weeks. Combined with the early-year bounce in home-mover activity we're starting to see, lenders who price more competitively can expect growing interest from those looking to take out a mortgage soon."
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