The Address / Falling fixed...

Posted on Friday, November 18, 2022

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The Bank of England’s decision to increase the base rate by 0.75% to 3% has impacted the rise of tracker mortgage rates. However, it may be little realised that fixed rate deals have got cheaper. 

The latest figures now show that fixed rates are continuing to fall from the highs they reached following September’s mini-Budget.

Several lenders have lowered rates this month (November 2022). There will likely be further changes by other big brand lenders, but we expect the market to settle and rates to stabilise over the next few months.

Market projections for how high interest rates will go next year have fallen sharply with most expecting the base rate to peak at 4.5%; 1.5% lower than predicted in the wake of the September’s mini-Budget.

Mortgage brokers are therefore forecasting that five-year fixed mortgage rates will fall back to below 4% in the New Year.

The consensus is that fixed rates are falling, despite the Bank of England increase, because lenders had already priced in future rises - welcome news for borrowers.

We hope this direction of fixed rate pricing will put some borrower’s minds at ease, as The Bank of England governor Andrew Bailey said the next rate rise is unlikely to be as high as the market has priced in and should settle mortgage rates. 

In the wake of the Chancellor’s autumn statement, time is ticking on the stamp duty cut, particularly for first-time buyers. Coupled with the fall in fixed rate mortgages, the property market is expected to sustain some realignment and remain largely defiant.

If you need mortgage advice, speak to our team at your local branch who are partnered with independent professionals. With sight of hundreds of mortgages across all lenders, they have proven time and again to find our clients the best, bespoke path that ensures their journey to their next home is unphased.