{"id":43756,"date":"2023-11-16T16:59:10","date_gmt":"2023-11-16T16:59:10","guid":{"rendered":"https:\/\/cabanesetcompagnie.com\/?p=43756"},"modified":"2023-11-16T16:59:10","modified_gmt":"2023-11-16T16:59:10","slug":"huge-relief-for-homeowners-as-mortgage-rates-could-drop-below-4","status":"publish","type":"post","link":"https:\/\/cabanesetcompagnie.com\/world-news\/huge-relief-for-homeowners-as-mortgage-rates-could-drop-below-4\/","title":{"rendered":"‘Huge relief’ for homeowners as mortgage rates could drop below 4%"},"content":{"rendered":"

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The drop in inflation is positive news for households as it means incomes might be less stretched than they have been.<\/p>\n

The Consumer Prices Index (CPI) significantly fell to 4.6 percent this month – the lowest level in two years – with the slowdown coming after energy prices soared last year.<\/p>\n

However the decline in the headline rate does not mean prices are reducing, just that they are rising less quickly compared to previous months.<\/p>\n

However some households are already taking comfort from bumper pay rises, as average wage growth is now outstripping inflation, so a retreat in price rises might feel like “a double win”.<\/p>\n

Fixed-rate mortgages are on track to near four percent by the end of the year as lower-than-expected inflation figures fuel optimism for homeowners.<\/p>\n

READ MORE: <\/strong> Mapped: House prices fall by almost \u00a31,500 in September<\/strong><\/p>\n

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Alice Haine, Personal Finance Analyst at Bestinvest, explained the Bank of England may hold interest rates at 5.25 percent for now and eventually cut them to “soften the blow” from high mortgage rates, following the fall in inflation<\/p>\n

Mortgage brokers have hailed the drop as \u201crelief\u201d for mortgage borrowers, increasing the likelihood of a pre-Christmas price war among lenders.<\/p>\n

Ashley Thomas, director at London-based broker, Magni Finance, suggested rates could even start with a three before 2023 is out: \u201cLenders are getting more aggressive with rate cuts. I wouldn\u2019t be surprised to see rates drop below four percent by the end of the year.<\/p>\n

“The next inflation data will be crucial for mortgage lenders, and expect a lot of rates to reduce if inflation has dropped significantly.\u201d<\/p>\n

HSBC now offers a 4.59 percent five-year fixed rate for buyers with a 40 percent deposit or equity in their home. Nationwide, NatWest and TSB slashed their mortgage rates last week, amid bets that interest rates will start falling from their current level of 5.25 percent next year.<\/p>\n

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