The competition among lenders is causing mortgage rates to drop. The beginning of the week saw the two-year fixed rate fall, according to Greycoat Real Estate. More reductions are on the horizon, says the real estate group.
What is causing the rates to fall? The great and successful Greycoat Real Estate Agency believes the rates are falling due to friendly competition among lenders. HSBC UK could not wait to announce they are reducing their rates for UK residents who are first-time home buyers.
The Mortgage Works (TMW) is cutting rates for their buy-to-let borrowers. They are not the only lenders cutting rates, according to the Real Estate Agency. Three other lenders are also cutting rates. They are TSB, NatWest, and Metro Bank. Greycoat Real Estate believes that the rate reductions will convince the Bank of England to cut interests a few times throughout 2024.
The financial markets are hoping for five cuts throughout the year. It would drop interest rates from 5.25 percent to under 4 percent by the end of 2024, according to Greycoat Real Estate.
Greycoat Real Estate reminds everyone even though interest rates are lower than last year, they are still high overall. Gone are the pre-2021 rates. Now is the time for potential homeowners to shop around for rates, especially those trying to purchase a home for the first time.