Homebuyers are being urged to get “preapproved now” as half of UK lenders are now slashing mortgage rates.
Those looking to get on the property ladder have been priced out in recent years, according to a study by Online Mortgage Advisor, partially due to rising interest rates.
High street banks, including HSBC, Lloyds, TSB and NatWest, have announced reductions as part of the latest wave of mortgage rate cuts.
All of the “Big Six” have lowered the amount of interest they charge since December, with digital and telephone-based bank first direct also following suit.
Homebuyers are being urged to 'get approved now' for mortgages
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Malcolm Ferrante, a tax expert and CSB Group's Senior Manager for Immigration and Relocation, recommended homebuyers “not to get too caught up” in waiting for interest rates to drop further.
He warned: “Rates may dip a bit more, but getting preapproved now still makes sense for many buyers and homeowners.
“The savings outweigh short-term rate fluctuations in most cases. Focus on finding the right home or refinance terms to suit your individual needs and timeframe.”
Earlier today, Moneyfactscompare.co.uk published a breakdown of the average mortgage rates depending on the product as of January 5.
The average two-year fixed residential mortgage rate today is 5.83 per cent which is down from an average rate of 5.87 per cent on the previous working day.
Mirroring this trajectory, the average five-year fixed residential mortgage rate today is 5.43 per cent which is drop from yesterday’s 5.46 per cent.
The average two-year buy-to-let residential mortgage has fallen from 5.89 per cent to 5.87 per cent over the same period.
Furthermore, the average five-year buy-to-let residential mortgage rate today is 5.84 per cent, a slight drop from 5.86 per cent yesterday.
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Interest rates are set to come down which will affect mortgage repayments GETTY However, the average two-year tracker interest rate is 6.15 per cent which remains unchanged from the last working day.
As of January 1, 2024, the average standard variable interest rate is at 8.18 per cent.
Despite mortgage rates for fixed rate deals, 1.6 million homeowners are expected to pay more towards their monthly repayments later this year as their fix comes to an end.