Views on latest wave of rate cuts
How are customers responding to the latest wave of rate cuts?
What are you advising clients? To take the lowered rates, or hold out for more?
How are the consecutive wave of rate cuts impacting the market?
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10 responses from the Newspage communityCopy all
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With most lenders allowing you to change if rates reduce it's madness not recommending that clients lock in early. This helps with client retention and confidence as they know what they have and can swap out if a better rate comes along... all part of the madness that is the current mortgage market!!
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When are the lenders going to make a monumental change rather than the petty one-upmanship we are seeing with these minuscule increases? These are nothing more than attempts to get free advertising and a minute of applause for yet another decrease of 0.05%. We need a lender to come out and say confidently, we are breaking the mold, let's see if the recent pause on the base rate will give somebody the family jewels to make a real statement
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Rate cuts are what everyone wants to see right now. It will help improve all areas of the mortgage market and should stimulate growth as well. The latest inflation figures were a bit of a shock as the Bank of England was expecting an increase due to the oil increases. This didn't materialise this month, and although it may come into play next month, right now it's a huge shot in the arm for the mortgage market. We are already seeing positive reactions in the swaps and if this continues competitive 4% rates will be seen in a matter of days/weeks.
Clients can lock in rates with brokers, which we can then reduce if new rates come out, so it makes sense to lock in now whilst this plays out. Tracker rates will become more popular as we will be closing in on the peak of base rate rises. Perhaps one more may come be seen, but it seems like we may be at the peak now.
Clients can lock in rates with brokers, which we can then reduce if new rates come out, so it makes sense to lock in now whilst this plays out. Tracker rates will become more popular as we will be closing in on the peak of base rate rises. Perhaps one more may come be seen, but it seems like we may be at the peak now.
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Loving the price war and so are my client, we are looking to ride the wave of reductions as long as possible before completion and then switch to the cheapest product with the current lender.
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I would say that we have one more BoE rise which could affect the swap rates. Either take these ones, or wait to see what happens. I think we should have a bit of stability over the next few months. They have pushed hard enough! Whatever happens, the market will stay busy. There are still houses to sell and there are still people to buy them.
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Our feelings at the moment are to watch the lenders' rate movements and delay any decisions until better value from the fixed rate market can be seen - where transaction pressure allows.
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The wave of interest rate reductions is a welcome sight to buyers and existing customers, it is hopefully a sign the economy is starting to get under control, and sending some positivity to all.
I am offering all clients the ability to accept the lower rates, and if lenders reduce them again, I will do the same exercise time after time.
In time I am sure the rate cuts will provide the confidence this fragile housing market is seeking.
We have seen property prices reduce over the last 12 months, therefore with the right interest rate first-time buyers are aware they can bag themselves a very good purchase, with the rates reducing and rents increasing, it will perhaps encourage first-time buyers out of rented accommodation and into home ownership.
I am offering all clients the ability to accept the lower rates, and if lenders reduce them again, I will do the same exercise time after time.
In time I am sure the rate cuts will provide the confidence this fragile housing market is seeking.
We have seen property prices reduce over the last 12 months, therefore with the right interest rate first-time buyers are aware they can bag themselves a very good purchase, with the rates reducing and rents increasing, it will perhaps encourage first-time buyers out of rented accommodation and into home ownership.
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We're advising clients to get cracking as you never know what's round the corner so reserve a deal now then we can reassess closer to product end date or exchange of contracts. It's a win-win and generally there will be ample time to take advantage of better rates if they come along.
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Many clients have contacted me as they have seen in the press that mortgage fixed rates have been decreasing over the last few weeks. I would always recommend to a client that we secure a rate as soon as possible still, and we then monitor on a monthly basis to see if we can switch to a lower rate.
From looking at mortgage products that were secured 4 months ago with Halifax, the rates available to those clients now if we had waited to submit them now, rather than 6 months ahead are 2% more, so even though the rates have dropped slightly they are still dramatically higher than a few months ago for many lenders.
Most of my clients are now accepting that rates are higher, and not freaking out too much, as the 1 and 2% rates that had been available since covid were not normal rates and once they accept that the normal rates currently in most cases are 4/5/6% for most people it is still cheaper than renting
From looking at mortgage products that were secured 4 months ago with Halifax, the rates available to those clients now if we had waited to submit them now, rather than 6 months ahead are 2% more, so even though the rates have dropped slightly they are still dramatically higher than a few months ago for many lenders.
Most of my clients are now accepting that rates are higher, and not freaking out too much, as the 1 and 2% rates that had been available since covid were not normal rates and once they accept that the normal rates currently in most cases are 4/5/6% for most people it is still cheaper than renting
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It is very welcome that the bank of England opted not to increase the base rate. Swap rates are now hovering below the 5% mark. But it still feels as though this fantastic news is still not being passed on to the consumers yet in the form of lower mortgage rates. We are still seeing 2 year deals priced around 6% and 5 years deals around 5.5%. It would be very welcome to see both these options priced below 5% in October onwards which would be a relief to anyone involved in the housing market.