- Finance
- Mortgage
Mortgages and interest rates - July 2024
With the election over, the housing market’s focus has moved onto the base rate and when it will come down and by how much. Inflation held steady at 2% in June, which is the Bank of England’s target level and has been there since May. However, as a result of concerns over high services inflation and wage growth, the money markets have pushed back the expected date of a reduction until September.
In the interim, lenders have been cutting their mortgage rates across the board, with the notable exception of those for first-time buyers, which have remained where they were. The best five-year fixed rates, on the other hand, are now under 4%.
Rachel Springall, a finance expert at Moneyfactscompare.co.uk, says:
“Fixed mortgage rates are on the downward trend, which will be a relief to borrowers looking to refinance. There is still much more room for improvement, but it has taken a few months for the lowest fixed mortgage rates to drop below the 4% mark.“
Below is a selection of this month’s best buys from Moneyfacts.co.uk:
Two-year fixed rates: 4.70% from Nationwide BS. Product fee £999. 60% LTV.
4.79% from first direct. Product fee £490. 60% LTV.
Three-year fixed rates: 4.59% from first direct. Product fee £490. 60% LTV.
4.60% from Nationwide BS. Product fee £999. 60% LTV.
Five-year fixed rates: 4.32% from Nationwide BS. Product fee £999. 60% LTV
4.34% from first direct. Product fee £999. 60% LTV.
Discounted variable: 4.84% For 2 years. From Progressive BS. Product fee £0. 75% LTV.
4.85% For 2 years. From Reliance Bank. Product fee £1,094. 75% LTV.
BUY-TO-LET (BTL)
Best two-year fixed rate: 3.54% from The Mortgage Works. Arrangement 3.00% Advance. 65% LTV.
Five-year fixed rate: 3.94% from The Mortgage Works. Arrangement 3.00% Advance. 65% LTV
Best Discounted variable: 5.00% For 2 years. From Monmouthshire BS. Arrangement 2.00% advance. 75% LTV.
The information we provide is our personal opinion and should not be relied upon for financial advice. Should you need financial advice or guidance please contact an appropriate professional.
