- Finance
- Mortgage
Mortgages and interest rates - September 2024
Post the base rate cut, mortgage rates have been steadily falling, with many down by around 0.15% when compared to this time last month. It is a trend that looks set to continue with more and more deals dropping below the 4.0% mark.
The expectation now is for the base rate to continue heading downward, with Bloomberg predicting there could be another 0.25% reduction in November. The British Chambers of Commerce is also forecasting a base rate of 4.75% but not until the end of the year, then down to 4.35% in 2025 and 3.95% 12 months later.
There is no guarantee that rates will continue to fall though – inflation has been rising, up from 2.0% to 2.2%. Pay inflation, on the other hand, fell from 5.7% to 5.4% and services inflation from 5.7% to 5.2%.
The MPC (Monetary Policy Committee) has not been unduly alarmed by the 2.2% rise but will be monitoring the situation carefully and will not be rushed into reducing the base rate any further until conditions allow.
Below is a selection of this month’s best buys from Moneyfacts.co.uk:
Two-year fixed rates: 4.33% from Nationwide BS. Product fee £999. 60% LTV.
4.59% from Yorkshire BS. Product fee £1,495.00. 75% LTV.
Three-year fixed rates: 4.34% from Nationwide BS. Product fee £999. 60% LTV.
4.34% from Yorkshire BS. Product fee £1,495. 75% LTV.
Five-year fixed rates: 3.99% from Nationwide BS. Product fee £999. 60% LTV
4.24% from first direct. Product fee £490. 60% LTV.
Discounted variable: 4.54% For 2 years. From Progressive BS. Product fee £0. 75% LTV.
4.59% For 2 years. From Scottish BS. Product fee £995. 60% LTV.
BUY-TO-LET (BTL)
Best two-year fixed rate: 3.49% from The Mortgage Works. Arrangement 3.00% Advance. 65% LTV.
Five-year fixed rate: 3.79% from The Mortgage Works. Arrangement 3.00% Advance. 65% LTV
Best Discounted variable: 4.94% For 2 years. From Mansfield BS. Booking £199, completion 2.50% 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.
