Sumary of Mortgage rates may be bottoming out as 5-year fix falls to 1.19%:
- ‘Buyers’ insatiable appetite to move home has meant the value of new mortgages started the year at highs not seen since before the 2008/09 financial crash,’ said Paul Stockwell, chief commercial Officer at Gatehouse Bank..
- ‘Borrowers have never had it so good, and ultra-low mortgage rates are a significant reason why house prices are climbing at their fastest pace since 2014..
- ‘However, with the economy roaring back to life and inflation picking up, we’re already seeing some big lenders notch up the price of their products in anticipation that interest rates will begin to rise..
- ‘Whilst I suspect that rates have bottomed out, there are so many variables and you can’t say anything for certain at present.’ If mortgage borrowing does become more expensive, it could help to slow down the runaway house price rises witnessed in the past year..
- ‘It is inevitable that with any significant increases in mortgage rates this will put the brakes on house price inflation’, Goldberg added….