Charlie Nunn: "This kind of statement from a senior figure within the mortgage and banking industry is what we need more of"

If you’re a first-time buyer, you may not see ultra-low interest rates in your mortgage lifetime. But that doesn’t mean a return to good interest rates isn’t possible. We should see rates beginning with a 3 or even a 2 in the not-too-distant future, especially for those with good deposits or equity. Rates at this level provide stability and that would help to avoid the turbulence and torture caused by any future Truss-type administrations.

It's widely perceived using information from many lender "experts" that the market is correcting itself and 3.5% is going to be the norm in the future. All those years of sub-2% lending now seem like a fairytale after the last few years of bad dreams. We all need to face the fact that the ultra-low interest rates borrowers previously enjoyed won't be returning for a long time or possibly ever.

What will happen to interest rates is the most common question that I am asked on a daily basis. Of course it's hard to predict what will happen to rates, but I agree and tell all my clients that rates will never be returning to those ultra-low levels, and that this is the new norm and I see rates settling around the 3%-4% mark. Some clients disagree but on the whole most are accepting of this, and I believe the public as a whole are too, which is why we are starting to see more enquiries and why the property market is proving to be so resilient.

A huge proportion of mortgage borrowers have never seen mortgage rates above 3% in their adult lifetimes, so the turbulence of the past few years has been difficult for many to comprehend. But whilst many have moaned and groaned about these seismic increases in interest rates, most have managed to absorb the extra monthly payments, and will be more cautious about budgeting in general, realising that those cheap days of borrowing have long gone. Most appreciate on reflection that rates were too cheap for too long, and that reasonable pricing is now the norm.

I see this a lot: people waiting for those ultra-low rates to return, hoping to see sub-3% mortgages again. But let's face it, those rates were an anomaly. Historically, rates have never been as low as they were from 2009 onwards, and it's unrealistic to expect them to be that low anytime soon. Charlie Nunn's comments are a reality check for homeowners and potential buyers alike. Most borrowers have started to accept that ultra-low rates won't be making a comeback. However, there are still some who hold out hope for a return to those golden days. It's crucial for everyone to take this into consideration when planning to buy a residential or investment property with a mortgage. Interest rate cuts from the Bank of England later this year would certainly be beneficial, but we all need to adjust our expectations and plan accordingly. The era of ultra-low rates is behind us, so it's time to make smart, informed decisions based on the current market realities.

For the most part, borrowers in our experience have readjusted to the new rate environment and know that the good old days of artificially low rates are over. Borrowers are more relieved that rates will no longer rise to 6% than hopeful that they will fall to 2%-3% again. That said there is an expectation that rates will fall over the next six months but this is more likely to be at a glacial pace and buyers have to weigh up waiting for a slightly lower rate that may not appear or risk losing out on their dream home as house prices increase.